Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC Re) and the New India Assurance Company continue to be identified as Domestic Systemically Important Insurers (D-SIIs) by the Insurance Regulatory and Development Authority of India (IRDAI) in 2023-24.
- D-SIIs are insurance companies which are perceived as ‘too big or too important to fail’ (TBTF) based on their size, market importance, and domestic and global interconnectedness.
- The distress or failure of these D-SIIs would lead to a significant dislocation in the domestic financial system.
- Therefore, the continued functioning of D-SIIs is critical for the uninterrupted availability of insurance services to the national economy.
- D-SIIs are subjected to additional regulatory measures to deal with systemic risks and moral hazard issues with an increased level of corporate governance and the need for these insurers to identify all relevant risks and promote a sound risk management framework and culture.
- LIC and New India are the largest life and general insurance companies in the country, respectively.
- GIC Re is the sole Indian reinsurer.
