To,
The Chairman/ Chief Executive Officer of
All Non Life Insurance and Re-insurance Companies
Dear Sir,
Reporting of Maintenance of Solvency Margin Ratio
As you are aware, all insurance companies are required to maintain the solvency ratio of 1.5 at all times. Further, IRDA (Assets, Liabilities and Solvency Margin of Insurers) Regulations, 2000 require all insurers to file the Statement of Solvency Margin (General Insurers) as at 31 st March every year.
Post relaxation of controls on the tariffs for the non-life insurance industry, there is a felt need to monitor the solvency position of all insurers at shorter intervals. Accordingly, it has now been decided that all non-life insurance companies shall file their solvency position as at the end of each quarter. It is expected that the stipulation would enable insurance companies to lay down their business plans and to be in the position to meet their capital requirements in a timely manner. While the stipulation was made effective for the life insurance companies, w.e.f. June, 2007, the requirement is now being extended to the non-life and re-insurance companies as well.
The filing of quarterly statements is required to be made as per the following schedule:
Solvency report as on |
To be submitted on or before |
30 th June |
15 th August |
30 th September |
15 th November |
31 st December |
15 th February |
The prevailing requirements for filing of the Solvency Statements as at 31 st March shall continue as per the provisos of the Regulations under reference.
The format of submission of the solvency position is enclosed at Annexe.
Kindly acknowledge receipt.
(C. R. Muralidharan)
Member (F&I)