LIC, GIC Re and New India continue to be identified as Domestic Systemically Important Insurers (D-SIIs)

Print Friendly, PDF & Email

The Insurance Regulatory and Development Authority of India has retained LIC, GIC and New India as Systemically Important Domestic Insurers (D-SII).

  • Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC) and New India have been retained as D-SIIs for the year 2021-22 as well as for the year 2020-21.
  • The Insurance Regulatory and Development Authority of India (IRDAI) schedules D-SIIson an annual basis.
  • D-SIIs refer to insurers of such size, market importance and interconnected domestically and globally, whose distress or failure would result in widespread disorganization of the domestic financial system.
  • Thus, their continuous functioning is very important for the hassle free availability of insurance related services for the national economy.
  • These, as the insurer, are ‘so large or important that they cannot be allowed to fail’.

Criteria for Determination of D-SIIs:

  • Based on the size of the operations in respect of gross revenue including premiums for insurance undertaken and the value of the asset under management.
  • Based on global activities in more than one jurisdiction.

Due to the importance of D-Slls, additional regulatory measures have been put in place to address issues of systemic risks and ethical hazards to them.

Similarly, the Reserve Bank of India identifies Systemically Important Domestic Banks (D-SIBs) or banks that “cannot be allowed to fail”.

SBI, ICICI and HDFC banks have been earmarked as D-SIBs for the year 2020-21.

Source – The Hindu

Download Our App

MORE CURRENT AFFAIRS

IAS Online Coaching

Login to your account

Daily Current Affairs Quiz | Current Affairs | How to Prepare For UPSC Interview | CSAT Strategy For UPSC | GK Question for UPSC | UPSC quiz in hindi | Civil Services Coaching

Want to Purchase Best Study Material For UPSC ?

All the books are in hard copy we will deliver your book at your given address

Open chat
1
Youth Destination IAS . PCS
To get access
- NCERT Classes
- Current Affairs Magazine
- IAS Booklet
- Complete syllabus analysis
- Demo classes
https://online.youthdestination.in/