The Insurance Regulatory and Development Authority of India (IRDAI) is working on a new initiative, the Regulatory Action Repository System (RARS), to modernise its supervision processes and strengthen regulatory oversight.
RARS will function as a centralised digital platform to consolidate regulatory actions such as orders, penalties, warnings, directions, advisories and closures issued by IRDAI. According to IRDAI’s 2023-24 annual report, the system is designed to enhance access to data on regulatory actions while ensuring consistency across various categories of entities.
"Apart from the rationalisation of regulations, RARS, a centralised data repository of actions taken by IRDAI on violations of regulated entities is also under active consideration. The RARS is expected to bring transparency and accessibility to historical records," IRDAI said in the report.
The initiative aims to eliminate inconsistencies by providing comprehensive insights into regulatory actions. While it promotes non-discrimination, authorities would still consider "the gravity of violation, circumstances, and proportionality" when determining regulatory measures, the insurance regulator said.
"As a centralised data repository, RARS proposes to streamline access to historical actions and empowers the authority to swiftly and decisively address violations
committed by regulated entities," the report said.
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The system would provide departments with timely insights and pertinent information, enabling them to identify and prioritise regulatory focus areas.
Key features of RARS include robust search functionalities for retrieving specific regulatory actions based on various parameters and automated report generation to reduce manual processes. These capabilities are expected to enhance efficiency, minimise administrative burden and improve IRDAI’s response to regulatory matters.
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The platform will also facilitate detailed analysis of violations, enabling the regulator to identify trends, patterns and common regulatory gaps that require attention, it said.
Calling it a "significant step forward in modernising regulatory operations," the report said, stressing on RARS’s potential to foster transparency and collaboration across IRDAI’s departments, improving regulatory focus and decision-making.
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