Now Reading: Parliamentary panel tells IRDAI to fast-track risk-based capital
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Parliamentary panel tells IRDAI to fast-track risk-based capital
A parliamentary committee has recommended that IRDAI fast-track the risk-based capital framework, according to The Hindu Business Line. The Committee on Public Undertakings, in a report tabled on August 6, also urged…
The Story in Brief
A parliamentary committee has recommended that IRDAI fast-track the risk-based capital framework, according to The Hindu Business Line. The Committee on Public Undertakings, in a report tabled on August 6, also urged the government to examine rationalising the 18% GST on health, term life, agricultural insurance and reinsurance products. It noted that the high GST has hurt affordability and insurance penetration.
The panel expressed concern over the falling market share of public sector insurers and the weak financial health of three general insurers. It recommended board-approved solvency restoration plans with quarterly milestones and said government capital infusion should be a last resort after internal reforms. The committee also called for measurable digital transformation benchmarks across state-run insurers.
The Indian Opinion
The talk of cutting GST on insurance is popular but one-sided. The panel rightly says fiscal sustainability matters. Less noticed is its tough message to three sick public general insurers: fix yourself before asking for taxpayer money. The real test is whether those quarterly solvency milestones will force genuine restructuring or become another excuse for a bailout.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
