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On the supply side, the most significant issue flagged by IRDA for life insurers is:
A{'text': 'Reinsurance shortage', 'letter': 'A'}
B{'text': 'Mis-selling', 'letter': 'B'}
C{'text': 'Solvency under-funding', 'letter': 'C'}
D{'text': 'Tariff distortions', 'letter': 'D'}
Answer & Solution
Correct answer: B. {'text': 'Mis-selling', 'letter': 'B'}
1. The IRDA brochure outlines supply-side challenges for life and non-life insurers.
2. For life insurance companies, it singles out one practice undermining confidence.
3. Mis-selling is one of the important issues which is coming in the way of building confidence.
_Source: IRDA Brochure (irdai.gov.in — official IRDAI publication) — "For Life Insurance Companies: Mis-selling is one of the important issues which is coming in the way of building confidence in the insurance industry."_