27.06.2023
With a view to promote a ‘Principle based Regulatory regime’, foster ease of doing business and encourage proactive risk identification and management, the Insurance Regulatory and Development Authority of India (IRDAI) has been working towards developing and implementing ‘Risk Based Supervision’ (RBS) framework for insurance sector in India. For this purpose, IRDAI has collaborated with M/s Toronto Centre (TC), which is a not-for profit organisation, working with mission of promoting strong supervision in order 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 holistic analysis of the activities of regulated entity from risk perspective. In order to ensure robust development and smooth implementation of RBS, IRDAI has been engaging with various stakeholders over the past few months. After recent deliberations with TC, the first phase of pilots for RBS are scheduled to commence from July, 2023.
