Page 57 - The Insurance Times September 2025

IRDAI Corner

Quantitative Impact Study-2 Guidance referred here shall be for the purpose of QIS
2 only and shall not be interpreted as indicative of final
August 14, 2025
decision of the IRDAI on RBC framework. It is
noteworthy that the QIS 2 is an additional exercise only
1. Development and implementation of Risk Based Capital
and insurers shall continue to submit regulatory returns
(RBC) Framework for Indian Insurance Industry is one
as mandated by the current regulatory regime as and
of the key initiative undertaken by IRDAI among various
when due.
other initiatives to align the Indian Insurance Industry
with global best practices. As a key step in this 7. This has approval of the Competent Authority.
direction, the IRDAI conducted the First Quantitative
Impact Study (QIS 1) to assess the RBC framework's Amendment to Clause 15(a) of “Revised Guide-
initial impact in the year 2023.
lines on Insurance Repositories and Electronic
2. Basis the insights gained from the initial impact study Issuance of Insurance Policies”.
and suggestions received from the insurers, it was
considered necessary to further improve the July 29, 2025
framework and conduct Second Quantitative Impact
Study (QIS 2). 1. Reference is drawn to the Revised Guidelines on
Insurance Repositories and Electronic Issuance of
3. Insurers shall carry out the QIS 2 as per the
Insurance Policies (IRDA/INT/GDL/INSRE/111/05/2015)
Technical Guidance document with the data used for
dated 29th May, 2015. As per Clause 15(a), a review
Actuarial Valuation as at 31st March, 2025. Technical
of the controls, systems, procedures, and safeguards
Guidance document along with data submission
put in place by the insurance repository shall be
template and requirements regarding associated
conducted by an external system audit firm approved
template for submission of results, mode of submission
by the Authority, on yearly basis.
of results from QIS 2 exercise along with supplementary
information are being informed separately to the The above Clause 15(a) hereby stands modified and
insurers. shall be read as below: -
“A review of the controls, systems, procedures and
4. This circular shall be applicable to all Life Insurers,
safeguards put in place by the insurance repository as
General Insurers, Standalone Health Insurers,
outlines in Clause 14 shall be conducted at least once
Reinsurers, Branches of Foreign Reinsurers and Lloyds’
India. a year, at their own cost, by an external auditor who
is either a Certified Information System Auditor (CISA),
5. The QIS 2 shall be the pivotal step towards transition
a Chartered Accountant with DISA (ICAI) Qualification
of Indian Insurance Industry to the Risk Based Capital
or a CERT-IN certified expert”.
regime. The results of QIS 2 shall be submitted by
insurers on or before 15th October 2025. 2. This circular comes into force with immediate effect.
6. The insurers may please note that the Technical 3. This has approval of the Competent Authority.

52 September 2025 The Insurance Times