On March 31, 2023, the Life Insurance Corporation of India(LIC), General Insurance Corporation of India Limited (GIC Re), and New India Assurance continued to be identified by the Insurance Regulator and Development Authority of India (IRDAI) as Domestic Systemically Important Insurers (D-SIIs) for the Financial year 2022-23.
- IRDAI annually identifies D-SIIs and publishes the name of the insurers for public information.
- In line with the Reserve Bank of India’s benchmarking, D-SIIs are perceived to be ‘too big (or too important) to fail’.
- LIC, GIC, and New India Assurance were the D-SIIs from 2020-21.
About D-SIIs:
i.It refers to insurers of large size, market importance and domestic and global inter-connectedness whose distress or failure would cause a significant impact on the domestic financial system.
ii.Thus the continued functioning of D-SIIs is critical for the uninterrupted availability of insurance services to the national economy.
iii.D-SIIs entails any form of government support at the time of crisis in future.
iv.D-SIIs would also be subjected to additional regulatory measures to deal with the systemic risks and moral hazard issues.
v.They were also consequently subjected to enhanced regulatory supervision.
Recent Related News:
In November 2023, the IRDAI approved the amendments to rules registering insurance companies and investing in them.It aims to enable policyholders, insurers and merchants to provide ‘insurance for everyone by 2047’.
About General Insurance Corporation of India Limited (GIC Re):
Chairman and Managing Director – Devesh Srivastava
Headquarters – Mumbai, Maharashtra
Establishment – 22 November 1972
