The insurance regulator will soon adopt risk-based supervisory framework (RBSF) for supervision of the insurance industry. It will review all the current regulatory and supervisory process and prepare an appropriate framework for holistic supervision.
At present, Insurance Regulatory and Development Authority of India (Irdai) focuses on compliance-based approach for supervision. As the number of companies has increased, to supervise on compliance approach would need the same yardstick to be applied to all companies, regardless of their size and business model.
