LIC, GIC, NIA Identified As Systematically Important Insurers By IRDA
The Insurance Regulatory and Development Authority (IRDA) has identified LIC (Life Insurance Corporation), GIC (General Insurance Corporation of India), and New India Assurance (NIA) as domestic systemically important insurers (D-SIIs). With the announcement, IRDA has decided to subject them to enhanced regulatory supervision.
The D-SIIs is a classification that refers to insurers of such size, market importance, and domestic and global interconnectedness whose distress or failure would cause significant dislocation in the domestic financial system. These are perceived as insurers that are 'too big or too important to fail'.