Insurance regulator Irdai on Tuesday announced setting up two expert panels to prepare a risk-based capital framework aligned with Indian Accounting Standards.

Irdai is in the process of transitioning the Indian insurance sector from the existing factor-based solvency regime to a risk-based capital (RBC) framework, under which the capital requirement of an insurer is to be commensurate with the risks it carries, measured on an economic (market-consistent) balance sheet.