Prudent management of financial resources of insurers in the context of Covid-19 pandemic

Last updated: 26 February 2021

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The Insurance Regulatory and Development Authority of India (IRDAI) has issued a circular regarding the prudent management of insurers' financial resources in light of the Covid-19 pandemic. Following an assessment of the economic situation and the insurance sector's performance, the IRDAI notes a gradual revival in business. Consequently, the circular dated 24th April 2020 is being withdrawn with immediate effect. However, insurers are advised to carefully consider their capital, solvency, and liquidity positions before declaring dividends for the financial year 2020-21.

Insurance Regulatory and Development Authority of India CIRCULAR Ref. No:IRDA/FA/CIR/MISC/032/02/2021 Date:25-02-2021 To All the Insurers, Prudent management of financial resources of insurers in the contextof Covid-19 pandemic Ref: 1.IRDAI Circular no. IRDA/FA/CIR/MISC/089/04/2020 dated 13th April, 2020 2.IRDA/FA/CIR/MISC/099/04/2020 dated 24th April, 2020 This has reference to the aforesaid circulars. 1. The Authority has been assessing the economic position both

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FAQ :

The circular concerns the prudent management of financial resources of insurers in the context of the Covid-19 pandemic.

The IRDAI observes that the performance of insurers in terms of business is gradually reviving, although at a slower pace compared to pre-Covid levels.

The IRDAI has decided to withdraw the applicability of the circular dated 24th April 2020 with immediate effect.

Insurers are requested to take a conscious decision on declaring dividends for FY 2020-21, considering their capital, solvency, and liquidity positions.

The Boards of the insurers may be kept informed of the contents of this circular.

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Notification No : Ref. No:IRDA/F&A/CIR/MISC/032/02/2021
Published in Miscellaneous
Source : https://www.irdai.gov.in/ADMINCMS/cms/Circulars_Layout.aspx?page=PageNo4382

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