What is IAIS?
International Association of Insurance Supervisors (IAIS) is a voluntary membership organisation of insurance supervisors and regulators from more than 200 jurisdictions constituting 92% of the world’s insurance premiums. It is the international standard setting body in charge of developing and assisting in the implementation of principles, standards and other supporting materials for the supervision of the insurance sector. India’s International Financial Services Centres Authority and Indian Insurance Regulatory and Development Authority are currently its members.
It is an international standard setting body of the insurance sector. It was established in 1994. It operates under Swiss Civil Law. It aims to contribute to the maintenance of global financial stability and develop stable insurance markets for the protection of policyholders.
Insurance Sector in India
The Indian Life Insurance Companies Act, 1912 was the first statutory measure to regulate insurance business in India. In January 1956, an ordinance was issued nationalising the Life Insurance Corporation and Life Insurance Sector.
In 1972, the General Insurance Business (Nationlisation) Act was passed. Under the act, around 107 insurers were amalgamated.
In 1993, Malhotra committee was set up to propose recommendations for reforming the insurance sector. The Insurance Regulatory and Development Authority of India (IRDAI) was constituted based on the recommendations made by the committee.
The IRDAI received statutory status in April 2000. The main objectives of the IRDAI is to enhance customer satisfaction and promote competition in the insurance sector.
The insurance sector was opened up for both foreign players and private players in 2000. The foreign investment cap was increased from 26% to 49% in 2015. During the Union Budget 2019-20, the insurance sector was opened to 100% FDI (Foreign Direct Investment).
What is Saral Jeevan Bima?
Under the scheme, the IRDAI has come with guidelines for a standard insurance product. It specified benefits, terms and conditions, features that the life insurance companies should include.
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Category: Economy & Banking Current Affairs
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