The insurance regulator will facilitate data availability to consultants to undertake a quantitative impact study (QIS) for implementation of a risk-based capital (RBC) regime.

If required, the Insurance Regulatory and Development Authority of India (IRDAI) will help provide data which are not available publicly for the purpose of the QIS exercise, it said in response to pre-bid queries for expression of interest (EoI) on the implementation of the new regime.

Early this month, the IRDAI had called for EoI from consultancies, agencies and institutions for implementation of the RBC regime.

Access to data will be provided only on entering into a data protection and confidentiality agreement, it added.

Contrary to the solvency capital method being followed now, the RBC regime, in line with global practices, will prescribe the minimum capital requirement based on the types of risks to which an insurer is exposed.

The primary responsibility of data collection, consolidation, analytics and reporting will be the responsibility of the consultant.

On whether the bidder will have the freedom to take up any work related to RBC with any of the insurance companies during the period of engagement with the regulator, it said there will be no restrictions at the EoI stage.

However, the team engaged for development of the project should not be engaged for any other project of the consultant.

A senior IRDAI official said introduction of RBC will be a “game-changer” for the insurance industry as it will bring in greater transparency on risks, facilitate comparisons across insurance companies, and thereby help in early and effective intervention by the regulator, if necessary.

The insurance market is growing in double-digits. Last year, the total premium collected was about ₹4 lakh crore and ₹1.27 lakh crore in the life and general insurance segments, respectively, according to IRDAI data.

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