India’s insurance regulator plans to prescribe risk-based solvency requirements and greater equity capital to ensure insurers have sufficient capital adequacy to withstand socioeconomic shocks such as the coronavirus pandemic. The regulator also wants insurers to improve the persistency ratio and introduce new products.
“We are going to roll out some important reforms. Risk-based solvency or capital adequacy system will be introduced. We are working on it and we should be able to do it in about three years," Insurance Regulatory and Development Authority of India (Irdai) chairman S.C. Khuntia said at an industry event.