Big update for India's insurance world: IRDAI is bringing in two expert panels to design a new risk-based capital system.
Instead of the old one-size-fits-all approach, this new framework will make sure insurers hold enough money based on the actual risks they take, aligned with Indian Accounting Standards.
End to factor-based solvency regime
This shift means insurance companies will be judged more fairly and accurately: no more existing factor-based solvency regime.
The expert panels are set up to prepare a risk-based capital framework aligned with Indian Accounting Standards.