Insurance regulatory Development Authority of India(IRDAI) has advised companies to not just rely on the credit ratings for their investments. The advice came after several insurers had invested in entities like IL&FS based on the credit ratings assigned to its debt instruments.
The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous,statutory body created by IRDA act,1999.It was created based on the recommendations of the Malhotra Committee.It’s headquarters is in Hyderabad.
It is a ten member team consisting of a Chairman, five whole-time members and four part-time members, appointed by the Government of India.
The functions of IRDA includes (a)regulating the insurance industry and protects the customers (b)promotion of competition to enhance customer satisfaction and (c)lowering premiums for ensuring the financial security of the insurance sector.