MUMBAI: The Insurance Regulatory and Development Authority of India (Irdai) has partnered with not-for-profit organisation Toronto Centre (TC) to move towards a riskbased supervision (RBS) framework for insurance companies. The first phase of pilots for RBS is scheduled to commence in July.
RBS envisages moving towards a principal-based regulatory regime. This is expected to foster ease of doing business and encourage companies to identify risks in a proactive manner.
The Toronto Centre works to promote strong supervision to enhance financial stability, crisis preparedness and consumer protection. “RBS is a shift towards adopting global best practices for supervision, which focuses on proportionality, materiality and relies on a holistic analysis of the activities of a regulated entity from a risk perspective,” the regulator said.
RBS envisages moving towards a principal-based regulatory regime. This is expected to foster ease of doing business and encourage companies to identify risks in a proactive manner.
The Toronto Centre works to promote strong supervision to enhance financial stability, crisis preparedness and consumer protection. “RBS is a shift towards adopting global best practices for supervision, which focuses on proportionality, materiality and relies on a holistic analysis of the activities of a regulated entity from a risk perspective,” the regulator said.