The Insurance Regulatory and Development Authority (Irda) hoped that the global financial crisis would not affect Indian insurance firms. The Indian insurance firms are well capitalized and there’s no need of to revise solvency margins. 

The regulatory board is expected to implement the risk-based solvency norms by the end of this financial year. IRDA member, R Kannan said that there is no need to fear from global financial crisis and solvency margin is adequate to operate in India. He said that the margins of Indian private firms are more than their liabilities.

The Insurance Regulatory also sought help from private insurer Tata-AIG to deal with the situation that arises after the meltdown of US economy. Some companies are demanding revision of insurance solvency laws.  

The companies must have a solvency margin of 150 per cent as per the insurance laws in India. IRDA is expected to issue a new roadmap for risk-based capital structure for Indian insurance firms. It is aimed to ease the capital requirement for insurance firms of India.