The Insurance Regulatory and Development Authority of India ( IRDAI) has identified three state owned insurance companies - LIC, GIC Re and the New India Assurance Company as 'too big to fail' institutions. The firms are so big and important that their failure will impact the entire financial system. These institutions will be subjected to higher supervision by the insurance regulator. There's a need for the implementation of the new framework in letter and spirit. The government and regulator are required to follow a broad governance framework in a more rigorous manner. Anand Adhikari, Executive Editor of Business Today, explains. Watch the video for more.
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