Key facts
- Insurers will soon be able to undertake repo and government securities lending transactions.
- The insurance regulator is developing an operational framework for these activities.
- Recent amendments to insurance laws enable these changes.
- The new framework will detail settlement, platforms, collateral, and risk management.
Insurers are significant holders of government securities. Allowing them to engage in repo and securities lending transactions provides them with more tools to manage their liquidity, potentially leading to more efficient capital deployment and risk management within the insurance sector.