Irdai eases solvency margin requirement for insurers underwriting crop biz

It is estimated that the Insurance Regulatory and Development Authority of India (Irdai)'s move to ease solvency margin will unlock nearly Rs 1400 crore.

The Insurance Regulatory and Development Authority of India (Irdai) has reduced the solvency margin requirement for general insurers doing crop business. The decision can free up a capital of Rs 1,400 crore, which Irdai expects will increase the capacity of general insurers to underwrite more business.

“It is expected that the effect of this relaxation will be positive on the Industry as it will free up the capital, which can be utilised for underwriting more business,” the regulator said in a statement.

Irdai has been relaxing the period of admissibility of premiums due from state governments for solvency purposes from