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Which of the following authorities monitors the financial strength of insurers?

1) Insurance Regulatory and Development Authority of India (IRDAI)
2) Securities and Exchange Board of India (SEBI)
3) Reserve Bank of India (RBI)
4) Ministry of Finance

1 Answer

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Final answer:

The Insurance Regulatory and Development Authority of India (IRDAI) is the authority responsible for monitoring the financial strength of insurers in India.

Step-by-step explanation:

The authority that monitors the financial strength of insurers in India is the Insurance Regulatory and Development Authority of India (IRDAI).

Whereas, the Securities and Exchange Board of India (SEBI) regulates the securities market, the Reserve Bank of India (RBI) is responsible for the supervision of the banking sector, and the Ministry of Finance oversees the overall economic policy of the government.

IRDAI's key role is to ensure the growth of the insurance industry and protect policyholder interests, making it the correct authority to monitor insurers.

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