National Insurance Academy, Pune|Financial Management & Financial Services
P850 | Programme on Risk Based Capital (RBC) (LIC)
Academic Year 2026-2027
Duration
2Days
Scheduled Dates
06 Jul 2026 - 07 Jul 2026
Background
India has one of the fastest growing Insurance markets in the world, with significant demographic advantages. India will be the sixth biggest market for insurance in the world by 2032, with its total insurance premiums growing by 14% annually in nominal local currency terms over the next decade. The insurance sector has continued to grow in scale over the years. Life insurance accounts for about 75 percent of the total premium, reflecting the role played by life insurance in savings and investment markets. (Source: Swiss-Re Report).
The Insurance Regulatory and Development Authority of India (IRDAI) has been taking various initiatives to align the Indian Insurance Industry with the global best practices with the aim of ease of doing business and finally to achieve the objective of 'Insurance for All by 2047'. One of the key initiatives pertains to development and implementation of a Risk Based Capital (RBC) Framework for Indian insurance industry.
This framework would serve as a pivotal mechanism which would enable insurers to maintain an appropriate level of capital commensurate with the risks inherent in their insurance and reinsurance operations. Thus, it would act as a catalyst for insurers in optimizing capital utilization and ensuring efficient risk management. RBC's goal is to ensure that risk-based capital supports enterprise risk so that companies become more proactive in managing the risk. With the right approach and support from all stakeholders, a robust risk-based capital regime will take the Indian insurance industry to the next level.
Learning Objectives
The concept of RBC - Risk Based Capital/Solvency - II in Life Insurance.
Determining Risk Appetite in Insurance Business under RBC framework, and what matrices are relevant to determine the risk appetite aligning with the business strategy of the insurer.
Determining Risk Capital using (standard/dynamic) capital assessment models and allocation of capital across different types of risk exposures including operational risk, under RBC guidelines.
Role of Stress testing and Scenario analysis in determining Solvency capital requirement.
Role of Reinsurance and (ART- Alternative Risk Transfer) mechanism in solvency capital under dynamic scenario.
Changing Risk Governance structure under RBC and challenges in implementation of RBC.
Key Contents
Concept and Foundations of RBC and Risk Management
Risk Identification and Assessment & Risk Quantification and Measurement
Role of Stress testing and Scenario Analysis in Solvency Risk Capital
Role of Risk Governance under RBC
RBC Application in Life Insurance, Risk Modelling and Simulation
Regulatory Requirements and Compliance, RBC Reporting and Disclosure
RBC Implementation Challenges and Best Practices.
Current Scenario of RBC in India/European countries.
Who Should Attend
Officers (AO and above cadres) working in CO/ZO Actuarial department, CO Investment department, CO P & GS, ERM and F & A department of LIC and Risk Management executives from the various Private Life Insurance Companies in India.
