The Insurance Regulatory and Development Authority of India (IRDAI) on May 16, 2023, issued a notification regarding the Measures towards developing the Surety Insurance Bonds market.
The following has been stated namely: -
• IRDAI issued ‘IRDAI (Surety Insurance Contracts) Guidelines’ in January 2022 after recognizing the importance of Surety Insurance Bonds.
• The solvency requirement applicable for such products has now been reduced to a control level of 1.5 times from 1.875 previously prescribed.
• The prevailing 30% exposure limit applicable on each contract underwritten by an insurer, has been removed.
