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GI Council urges IRDAI for easier MTM rules to take on Covid-19 disruption

Wants regulator to allow companies to consider MTM losses as on Feb 29, instead of March 31 for the purpose of drawing up the P&L accounts

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While insurance companies ignore mark to-market-gains, they are required to recognise mark-to-market losses as an expense in their profit and loss accounts.

Namrata Acharya Subrata Panda Kolkata/Mumbai

4 min read Last Updated : Mar 30 2020 | 11:06 PM IST

With Covid-19 severely impacting the operations of non-life insurers, the General Insurance Council (GIC), the representative body of firms in this space, has urged the Insurance Regulatory and Development Authority of India (IRDAI) to relax certain regulatory requirements, particularly those related to solvency ratio.

In a letter to the insurance regulator, GIC has said that given the huge mark-to-market loss in equity investments in the current month, IRDAI should allow companies not to account for diminution in value in equity investments while finalising the accounts for the year ending March 31, 2020.

While insurance companies ignore mark to-market-gains, they are

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