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Irdai sets up a panel to identify systemically important insurers

The committee headed by Pravin Kutumbe, Member-Finance & Investment, Irdai, has been asked to submit report in six months

Press Trust of India  |  New Delhi 

Irdai, insurers, brokers, GIC

Insurance regulator Wednesday set up a panel to identity domestically systemically important (SII) and put in place an enhanced regulatory framework for them.

Explaining the rationale for having enhanced regulatory watch for SIIs, said their failure has potential to cause significant disruption to the essential services they provide to policy holders and to the overall economic activity in the country.

SIIs are perceived as that are 'too big to fail'.

"The continued functioning of SIIs is critical for the uninterrupted availability of uninterrupted insurance services to the real economy," said the Insurance Regulatory and Development Authority of India (Irdai).

The committee headed by Pravin Kutumbe, Member-Finance & Investment, Irdai, has been asked to submit report in six months.

As per the terms of reference, the panel has also to develop a paper on assessment methodology for SIIs in India and recommend enhanced supervision for them.

First Published: Wed, January 23 2019. 21:55 IST
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