The Insurance Regulatory and Development Authority of India vide notification dated 16.05.2023 has issued Measures towards developing Surety Insurance Bonds market. Recognizing the importance of Surety Insurance Bonds, IRDAI had issued ‘IRDAI (Surety Insurance Contracts) Guidelines’ in January 2022.
The solvency requirement applicable for such products has now been reduced to control level of 1.5 times from 1.875 previously prescribed. Further, the prevailing 30% exposure limit applicable on each contract underwritten by an insurer, has also been removed.
