Mumbai, July 24 -- The Insurance Regulatory and Development Authority of India's (Irdai) plan to roll out a risk-based capital (RBC) framework from April 2027 is running into industry concerns, with insurers expressing concern that capital constraints, technology upgrades and a shortage of skilled manpower could make the timeline difficult to meet.

Currently, Indian insurers follow a solvency-based capital framework in which capital requirements are determined using standard factors and each insurer's solvency level.

Under risk-based capital (RBC), assets and liabilities would be valued on a market-consistent basis. It requires insurers to hold capital proportional to their specific risk profile, rather than a regulatory minimum.

This ...