The domestic systematically-important insurers (D-SIIs) that have been identified by the Indian insurance regulator are expected to reduce their exposure to high-risk assets, said Moody’s Investor Service.
Insurance Regulatory and Development Authority of India (IRDAI) has identified Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC Re) and New India Assurance as domestic systemically-important insurers (D-SIIs) for 2020-21.
As per the insurance regulator, D-SIIs refer to insurers of such size, market importance and domestic and global inter-connectedness whose distress or failure would cause significant dislocation in the domestic financial system.
All three entities have exposure to the debt market and equity market and invest heavily into listed stocks. LIC is the largest insurer in the country with a balance sheet of Rs 31.2 lakh crore. GIC Re is the country’s sole reinsurer,