Cabinet approves IRDAI’s admission as a signatory to IAIS, MMoU
The Union Cabinet approved Insurance Regulatory and Development Authority’s (IRDAI) admission as a signatory to International Association of Insurance Supervisors (IAIS), Multilateral Memorandum of Understanding (MMoU).
The IAIS is a global framework for cooperation and information exchange between insurance supervisors. The IAIS-MMoU is a statement of its signatories’ intent to cooperate in the field of information exchange as well as procedure for handling information requests.
It provides a formal basis for cooperation and information exchange between the Signatory Authorities regarding the supervision of insurance companies where cross-border aspects arise mainly due to absence of any bilateral agreements.
The scope of the IAIS-MMoU is wider than the existing agreements as it also provides for supervision of other regulated entities such as insurance intermediaries under Anti Money Laundering, (AML) and Combating the Finance of Terrorism (CFT).
With increasing integration of financial market and growing number of internationally active insurance companies there is increased need for mutual cooperation and information exchange between insurance industry supervisors. In this background the IRDAI has become a signatory member of the IAIS-MMoU.
About Insurance Regulatory Authority of India (IRDA)
IRDA is an apex statutory body that regulates and develops the insurance industry in India. It was constituted as per provisions of Insurance Regulatory and Development Authority Act, 1999. Its headquarter is in Hyderabad.
The functions of IRDA are to protect the rights of insurance policy holders; provide registration certification to life insurance companies; renew, modify, cancel or suspend this registration certificate as and when appropriate; promote efficiency in the conduct of insurance business; promote and regulate professional organisations connected with the insurance and reinsurance business; regulate investment of funds by insurance companies; adjudication of disputes between insurers and intermediaries or insurance intermediaries.