Domestic Systemically Important Insurers (D-SIIs)

• The Insurance Regulatory and Development Authority of India (IRDAI) has identified three Domestic Systemically Important Insurers (D-SIIs) for the year 2023-24.
• Life Insurance Corporation of India, General Insurance Corporation of India and New India Assurance Co Ltd continue to be identified in the 2022-23 list of D-Slls.

ABOUT DOMESTIC SYSTEMICALLY IMPORTANT INSURERS

• D-SIIs refer to insurers of such size, market importance, and domestic and global interconnectedness, whose distress or failure would cause a significant dislocation in the domestic financial system.
• D-SIIs are perceived as insurers that are ‘too big or too important to fail’ (TBTF). This perception and perceived expectation of government support may amplify risk-taking, reduce market discipline, create competitive distortions and increase the possibility of distress in the future.
• These considerations require that D-Slls be subjected to additional regulatory measures to deal with systemic risks and moral hazard issues.
• Given the nature of their operations and the systemic importance of the D-Slls, these insurers have to raise the level of corporate governance and are being subjected to enhanced regulatory supervision.

ABOUT INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (IRDAI)

• The Insurance Regulatory Development Authority is a statutory agency established by the Insurance Regulatory Development Authority Act of 1999.
• It was established on the recommendations of the Malhotra Committee Report, in 1999.
• IRDAI was founded as an independent body with its headquarters in New Delhi. In 2001, its headquarters were relocated to Hyderabad, Telangana.
• IRDAI is a 10-member body– a Chairman, five full-time members, and four part-time members appointed by the Government of India.