Press Information Bureau

Government of India

Ministry of Finance

08-August-2012 18:17 IST

IRDA Announces Uniform Framework for Reporting Asset Liability Management Policy

The Insurance Regulatory and Development Authority (IRDA) has announced a broadly-defined uniform framework for reporting asset liability management (ALM) policy adopted by life and non-life insurance companies. According to the framework, each insurer will have an ALM policy approved by the Board of the Insurer which would consider asset liability relationships, the insurer’s overall risk tolerance, risk and return requirement, solvency position & liquidity requirements.

Further details are available vide IRDA circulars nos. IRDA/ACTL/CIR/ALM/005/01/2012 and IRDA/ACTL/CIR/ALM/006/01/2012 both dated 3rd January 2012 respectively.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.

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DSM/RS/Hb

Asset Liability Management framework: insurers must adopt board approved ALM policies addressing asset-liability relationships, risk tolerance and solvency. A uniform reporting framework requires every insurer to maintain an Asset Liability Management (ALM) policy approved by the insurer's Board, addressing asset-liability relationships, risk tolerance, risk-return objectives, solvency position and liquidity requirements, and incorporating mechanisms for monitoring and managing asset-liability mismatches.