- The Insurance Regulatory and Development Authority of India (IRDAI) has constituted a 7 member committee to identify the Systemically Important Insurers (SIIs), and recommend enhanced supervision measures for them.
- IRDAI member (finance and investment) Pravin Kutumbe will chair the committee that will have six other senior officials as members, including one as convenor.
- The committee has been given six months to submit its report.
- The decision is based on the advice of the International Association of Insurance Supervisors (IAIS) to all member countries to have a regulatory framework to deal with Domestic-SIIs.
- SIIs are perceived as insurers that are Too Big To Fail (TBTF). Since their failure has the potential to cause significant disruption to the overall economic activity of the country, these insurers enjoy government support at the time of distress.
- The continued functioning of SIIs is critical for the uninterrupted availability of uninterrupted insurance services to the real economy.
