India: Financial Sector Assessment Program—Detailed Assessments Report on IAIS Insurance Core Principles
IMF Staff Country Reports, August 29, 2013
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- India: Financial Sector Assessment Program—Detailed Assessments Report on IAIS Insurance Core Principles
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Bibliographic details
- Published: August 29, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484363188.002
Summary of assessment
- The paper discusses key findings of the assessment of India’s compliance with the International Association of Insurance Supervisors Insurance Core Principles (ICP).
- The Indian Regulatory and Development Authority (IRDA) has decided that India is not yet ready for a full transition to cutting-edge international approaches owing to informational and skills shortages and a continuing lack of international consensus.
- Certain prudential ICPs are affected by this decision.
Key findings
- IRDA needs to augment its resources in its core supervisory departments to introduce a rigorous corrective action and enforcement regime built on a risk-based approach to the capital and operational management of insurers.
- Resource and capacity constraints (informational and skills shortages) and lack of international consensus are the primary reasons for delaying full transition to cutting-edge international approaches.
Policy implications and recommendations
- Strengthen IRDA supervisory capacity:
- Augment resources in core supervisory departments.
- Build capabilities to implement a risk-based approach to capital and operational management of insurers.
- Develop and implement a rigorous corrective action and enforcement regime aligned with ICP prudential standards once capacity and consensus permit.
- Address informational and skills shortages to enable adoption of cutting-edge international approaches when appropriate.
Subject coverage and keywords
- Subjects: Auditing, Financial institutions, Financial sector policy and analysis, Insurance, Insurance companies, Internal audit, Public financial management (PFM), Solvency
- Keywords: Auditing, central government, corporate governance, CR, East Asia, Global, Insurance, Insurance companies, insurance sector, internal audit, Internal audit, ISCR, life insurance, life insurer, line of business, Northern Europe, risk management, Solvency, South Asia
Content in this bundle
- _cr13265 — Financial System Comparatives and IMF FSAP Findings