Mumbai, July 10 -- State-owned general insurers are backing the proposed shift to a risk-based capital regime, saying it could improve their solvency position by allowing assets to be valued at current market prices instead of historical cost.

The proposed framework links the capital an insurer must hold to the actual risks on its balance sheet. Unlike the current factor-based regime, it values investments such as equities and real estate at their market value.

The new regime is expected to be rolled out from April 2027, Ajay Seth, chairman of Insurance Regulatory and Development Authority of India (Irdai) said in a recent interview with a television channel.

"Given the deep, decades-long legacy of PSU insurers, our balance sheets carr...