Irdai says LIC, GIC Re, New India are too big to fail, need more control

The three are seen as key players to deal with systemic risks and moral hazard issues, have been told to raise corporate governance levels and promote a sound risk management culture

The Insurance Regulatory and Development Authority of India (Irdai) has identified Life Insurance Corporation (LIC), General Insurance Corporation (GIC Re) and New India Assurance as systemically important insurers in the domestic market for 2020-21.

These insurers will now be subjected to additional regulatory measures to deal with systemic risks and moral hazard issues.
 

The regulator has asked the three insurance companies to raise their corporate governance levels, identify all relevant risks, and promote a sound risk management culture, given their importance and size, which makes them too big to fail.
 

Domestic insurers whose market size, market importance, and domestic as well