The Insurance Regulatory and Development Authority of India (IRDAI) has reaffirmed Life Insurance Corporation of India (LIC), The New India Assurance Company, and General Insurance Corporation of India (GIC Re) as Domestic Systemically Important Insurers (D-SIIs) for the financial year 2024-25. This decision was taken at the regulator’s 129th meeting on March 12.
Why Are These Insurers D-SIIs?
D-SIIs are large insurers whose financial health is crucial to the stability of the Indian financial system. If such insurers face financial trouble, it could cause serious disruption to the country’s economy. Therefore, they are placed under enhanced regulatory supervision to ensure financial stability.
Approval for Valueattics Reinsurance
In another major decision, IRDAI has approved Valueattics Reinsurance, making it the first reinsurer to receive registration exclusively for reinsurance business in the revised regulatory framework. IRDAI stated that this move will promote greater competition in the reinsurance sector.
Progress on Key Insurance Initiatives
During the meeting, IRDAI also reviewed the progress of several key initiatives, including:
- Bima Sugam: A proposed online insurance marketplace.
- Indian Risk-Based Capital (RBC) framework: A new approach to managing insurance company risks.
- Risk-Based Supervisory Framework: A method to enhance regulatory oversight.
- State Insurance Plan: A strategy under consultation to improve insurance coverage at the State, district, urban, and gram panchayat levels.
About Valueattics Reinsurance
Valueattics Reinsurance is promoted by Prem Watsa-backed FAL Corporation and Go Digit founder Kamesh Goyal. It is India’s first private reinsurer to be granted a license. The company will start operations with an initial paid-up capital of ₹210 crore.
Kamesh Goyal, speaking on the development, said, “With this, the Digit group (general insurance, life insurance, and reinsurance) will become a one-stop solution for all insurance needs, providing full-spectrum risk coverage.”
Fairfax subsidiary FAL Corporation will be the majority stakeholder in Valueattics Reinsurance.
