The Insurance Regulatory and Development Authority of India (IRDAI) has issued a circular mandating a second Quantitative Impact Study (QIS 2) for all insurers, including foreign reinsurers and Lloyd’s India. This study is a key step in the IRDAI’s initiative to implement a Risk-Based Capital (RBC) framework for the Indian insurance industry, aiming to align it with international standards. Following insights from the first study in 2023, QIS 2 is intended to further refine the framework. All insurers are required to conduct the study using their actuarial valuation data as of March 31, 2025. The results must be submitted by October 15, 2025. The IRDAI will provide a separate technical guidance document and templates for data submission. The circular clarifies that this study is an additional exercise and does not replace the regular regulatory returns that insurers must continue to submit under the existing framework. The technical guidance for QIS 2 should not be considered a final decision on the future RBC framework.
Insurance Regulatory and Development Authority of India
Circular No: IRDAI/RBC/CIR/MISC/94/8/2025|Dated: 14.08.2025
To,
All Insurers including Branches of Foreign Reinsurers, Lloyds India
Subject: Quantitative Impact Study-2
1. Development and implementation of Risk Based Capital (RBC) Framework for Indian Insurance Industry is one of the key initiative undertaken by IRDAI among various other initiatives to align the Indian Insurance Industry with global best practices. As a key step in this direction, the IRDAI conducted the First Quantitative Impact Study (QIS 1) to assess the RBC framework’s initial impact in the year 2023.
2. Basis the insights gained from the initial impact study and suggestions received from the insurers, it was considered necessary to further improve the framework and conduct Second Quantitative Impact Study (QIS 2).
3. Insurers shall carry out the QIS 2 as per the Technical Guidance document with the data used for Actuarial Valuation as at 31st March, 2025. Technical Guidance document along with data submission template and requirements regarding associated template for submission of results, mode of submission of results from QIS 2 exercise along with supplementary information are being informed separately to the insurers.
4. This circular shall be applicable to all Life Insurers, General Insurers, Standalone Health Insurers, Reinsurers, Branches of Foreign Reinsurers and Lloyds’
5. The QIS 2 shall be the pivotal step towards transition of Indian Insurance Industry to the Risk Based Capital regime. The results of QIS 2 shall be submitted by insurers on or before 15th October 2025.
6. The insurers may please note that the Technical Guidance referred here shall be for the purpose of QIS 2 only and shall not be interpreted as indicative of final decision of the IRDAI on RBC framework. It is noteworthy that the QIS 2 is an additional exercise only and insurers shall continue to submit regulatory returns as mandated by the current regulatory regime as and when due.
7. This has approval of the Competent Authority.
CGM(Actuarial)
