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Question
Which institution regulates Insurance Companies? Explain this intermediary.
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Solution
The Insurance Regulatory and Development Authority of India (IRDAI) controls insurance firms in India. It was founded on December 26, 2014, under the IRDAI Act and is the apex organisation for governing and regulating the insurance business.
Insurance companies are institutions that offer risk coverage to people and businesses through a variety of insurance contracts. There are two primary types:
- Life insurance companies, such as the Life Insurance Corporation of India (LIC).
- General insurance companies include the General Insurance Corporation (GIC) of India.
In addition to these, various private sector insurance companies exist, including ICICI Prudential Life Insurance and Birla Sun Life Insurance.
Insurance firms are important intermediates in the insurance industry because they develop policies, collect premiums, manage risks, and settle claims. They are in charge of providing financial security and protection to policyholders.
