Insurance Regulatory and Development Authority (IRDA) is tightening its fist for the insurance companies to ensure adequate solvency margins for the insurers. Working on the early warning system model, the regulator would warn the insurer if its solvency margins go below the stipulated 1.5 level or 1.5 times the business underwritten. It will ask the insurer to sell no further policy if the solvency margins touch 1. The insurnace regulator is also worried about increase in total operating expenses to the premium earned for the insurers. Expenses of the insurance companies are increasing. If they do not manage cost, it ...

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