IRDAI greenlights reforms, policyholder fund norms, new general insurer
The Insurance Regulatory and Development Authority of India (IRDAI) has approved significant reforms aimed at enhancing operational and financial flexibility for insurers, strengthening policyholder protection, and streamlining regulatory processes. Key approvals include new Policyholders’ Education and Protection Fund (PEPF) regulations, liberalized investment norms, a facilitative framework for capital infusion, and corporate restructuring. The reforms are crucial for implementing the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 (SBSR Act), which permits up to 100% FDI in the insurance sector, leading to increased foreign shareholding and capital inflows. IRDAI also granted registration to a new general insurer and introduced perpetual registration for insurers.
The Insurance Regulatory and Development Authority of India (IRDAI) has approved significant reforms aimed at enhancing operational and financial flexibility for insurers, strengthening policyholder protection, and streamlining regulatory processes. Key approvals include new Policyholders’ Education and Protection Fund (PEPF) regulations, liberalized investment norms, a facilitative framework for capital infusion, and corporate restructuring. The reforms are crucial for implementing the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 (SBSR Act), which permits up to 100% FDI in the insurance sector, leading to increased foreign shareholding and capital inflows. IRDAI also granted registration to a new general insurer and introduced perpetual registration for insurers.
Exam linkage
GS Paper 3: Indian Economy - Financial Markets (Insurance Sector, Capital Market Reforms, FDI)
Syllabus mapping
This topic appears in Mains
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