LIC, GIC, New India Assurance identified as D-SIIs

The Life Insurance Corporation of India (LIC), General Insurance Corporation of India and The New India Assurance Co have been identified as Domestic Systemically Important Insurers (D-SIIs) for 2020-21 by insurance regulator IRDAI. Given the nature of operations and their systemic importance, the three public sector insurers have been asked to raise the level of corporate governance as well as identify all relevant risk and promote a sound risk management culture. The D-SIIs will also be subjected to enhanced regulatory supervision, the Insurance Regulatory and Development Authority of India (IRDAI) said. According to the regulator, D-SIIs refer to insurers of such size, market importance and domestic and global inter connectedness whose distress or failure would cause a significant dislocation in the domestic financial system. Thus, the continued functioning of D-SIIs is critical for the uninterrupted availability of insurance services to the national economy