As part of the efforts to foster ease of doing business in insurance and encourage proactive risk identification and management, the insurance regulator will roll out the first phase of pilot for Risk-Based Supervision’ (RBS) framework in July.
With a view to promoting a ‘Principle-based Regulatory regime’, the Insurance Regulatory and Development Authority of India (IRDAI) has been working towards developing and implementing RBS framework for the insurance sector.
For this purpose, IRDAI has collaborated with Toronto Centre (TC), which is a not-for-profit organisation, working with the mission of promoting strong supervision to enhance financial stability, crisis preparedness and consumer protection.
Adopting global practices
“RBS is a shift towards adopting global best practices for supervision which focusses on proportionality, materiality and relies on holistic analysis of the activities of regulated entity from a risk perspective,’‘ the regulatory said in a release on Tuesday.
In order to ensure smooth implementation of RBS, IRDAI has been engaging with various stakeholders over the past few months. After recent deliberations with Toronto Centre, the first phase of pilots for RBS are mow scheduled to commence from next month.