In order to ensure robust development and smooth implementation of RBS, Irdai has been engaging with various stakeholders over the past few months.
Insurance regulator Irdai will roll out the first phase of a pilot for the ‘Risk Based Supervision’ (RBS) framework for the insurance sector in India from July.
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In order to promote a principle-based regulatory regime, foster ease of doing business and encourage proactive risk identification and management, Irdai has been working towards developing and implementing the RBS framework.
“For this purpose, Irdai has collaborated with Toronto Centre (TC), which is a not-for profit organisation, working with mission of promoting strong supervision in order to enhance financial stability, crisis preparedness and consumer protection,” the regulator said in a release on Tuesday.
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RBS is a shift towards adopting global best practices for supervision, which focuses on proportionality, materiality and relies on holistic analysis of the activities of regulated entity from risk perspective. In order to ensure robust development and smooth implementation of RBS, Irdai has been engaging with various stakeholders over the past few months.
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“After recent deliberations with TC, the first phase of pilots for RBS are scheduled to commence from July 2023,” it added.
