LIC, New India Assurance, GIC Re retain systemically important status

State-owned Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC Re), and The New India Assurance Company continue to be identified as Domestic Systemically Important Insurers (D-SIIs) by the Insurance Regulatory and Development Authority of India (Irdai) for FY25–26.

D-SIIs are insurance companies that are perceived as ‘too big or too important to fail’ (TBTF) based on their size, market importance, and domestic and global interconnectedness.

LIC and New India Assurance are the country’s largest life and non-life insurance companies, respectively. Meanwhile, GIC Re is the state-owned reinsurer.

The distress or failure of these D-SIIs would lead to a significant dislocation in the domestic financial system. Therefore, the continued functioning of D-SIIs is critical for the uninterrupted availability of insurance services to the national economy.

It is due to these considerations that D-SIIs are subjected to additional regulatory measures to deal with systemic risks and moral hazard issues, with an increased level of corporate governance and the need for these insurers to identify all relevant risks and promote a sound risk management framework and culture.

They are also subjected to enhanced regulatory supervision.