Here is a 400-word summary:
The State-owned Life Insurance Corporation of India (LIC), The New India Assurance Company, and General Insurance Corporation of India (GIC Re) have retained their status as domestic systemically important insurers (D-SIIs) for the 2024-25 period. This designation comes with enhanced regulatory supervision, as defined by the Insurance Regulatory and Development Authority of India (IRDAI). According to the regulator, D-SIIs are insurers that are large, have significant market influence, and are interconnected globally, and whose failure would cause significant disruption to the domestic financial system.
In other news, IRDAI has granted a certificate of registration to Valueattics Reinsurance, the first reinsurer to be granted permission to operate exclusively in the reinsurance market. This move is seen as a step towards fostering competition in the reinsurance sector. Valueattics Re is a company promoted by Prem Watsa-backed FAL Corporation and GoDigit founder Kamesh Goyal. With an initial paid-up capital of ₹210 crore, the company will begin operations and aims to provide full-spectrum risk coverage as part of the Digit group’s diversified insurance offerings.
The IRDAI meeting also reviewed the status of the proposed insurance e-marketplace Bima Sugam and the progress on various measures, including Indian Risk-Based Capital (RBC) and Risk-Based Supervisory Framework. Additionally, the meeting discussed the State Insurance Plan, which will be supported by a multi-tiered governance model to facilitate localized identification of protection gaps and coverage at the state, district, urban, and gram panchayat levels.
Overall, these developments highlight the growth and evolution of the Indian insurance industry, with regulatory bodies working to ensure stability and competition in the sector. The entry of new players like Valueattics Re and the expansion of existing players like GoDigit will provide customers with more options and products, ultimately driving growth and development in the industry.