The Indian insurance regulator, Irdai, has made changes to surety bonds, a risk transfer tool for the principal. The changes, which aim to encourage the use of surety bonds, include removing an additional layer of solvency requirements and the prevailing 30% exposure limit applicable to each contract underwritten. Irdai Chairperson Debasish Panda said that if there is a need for further changes, industry suggestions will be examined. This follows the Indian Transport Ministry's recent decision to allow contractors engaged by the National Highways Authority of India and the National Highways and Infrastructure Development Corporation to convert their bank guarantees to insurance surety bonds.