The Insurance Regulatory and Development Authority of India (IRDAI) on August 10, 2023, issued a Circular regarding the Technical Guidance in respect of Indian Risk Based Capital Framework – Quantitative Impact Study.
This circular shall be applicable to all Life Insurers, General Insurers, Standalone Health Insurers, Reinsurers, Branches of Foreign Reinsurers, and Lloyds India.
The following has been stated namely: -
• It states that an initial Technical Guidance document has been prepared to detail the Indian Risk-Based Capital (Ind-RBC) framework for carrying out the first Quantitative Impact Study (QIS1).
• The QIS1 shall be the first major step towards the desired transformation and shall help in assessing the likely impact on the Indian Insurance Industry of the proposed framework for quantification of capital and solvency requirements following a Risk-based approach. The results of QIS1 shall be submitted by insurers on or before November 30, 2023.
• Insurers shall carry out the QIS1 as per the Technical Guidance document with the data used for Actuarial Valuation as on March 31, 2023.
• Technical Guidance document and requirements regarding associated templates for submission of results, mode of submission of results from QIS1 exercise along with supplementary information is being informed separately to the insurers.
• It states that the QIS1 results shall indicate initial assessment and the Technical Guidance on the proposed framework may further be refined based on these results as well as suggestions/feedback from the industry.
• The insurers may note that the Technical Guidance shall be for the purpose of QIS1 only and should not be interpreted as indicative of the final decision of the IRDAI on the RBC framework, this is a separate exercise and insurers shall continue to submit regulatory returns as mandated by the current regulatory regime as and when due.
[Circular No. IRDAI/RBC/CIR/MM/158/8/2023]
