The Authority formed a committee vide its order Ref: IRDA/ACT/ORD/MISC/116/06/2016 dated 10th June 2016. The Committee submitted the first part of its report on Market Consistent Valuation of Liability on 19th November 2016. The Part 2 / Final part of the report consisting of the following aspects is attached:
1. Pros and cons of current solvency regime and Risk Based Capital regime in the Insurance sector (Life, Non-Life, Standalone Health insurance and Reinsurance), review the recommendations of the Committee on Risk Based Capital under the Chairmanship of Mr. P. A. Balasubramanyam and to recommend a suitable approach in the current Indian context.
2. The recommended approach with respect to the following aspects
a) broad time frame for completion of entire exercise under the recommended approach
b) whether IRDAI will require help of professional Actuarial Consultants on paid basis during this exercise. If yes, what should be the terms of reference for the Consultants?”
Please Download the .PDF file to view the Committee Report