In a move aimed at fostering a conducive insurance regulatory environment and aiding the systematic development of the country’s reinsurance sector, the Insurance Regulatory and Development Authority of India (IRDAI) has announced the approval of eight principle-based consolidated regulations.
According to the IRDAI, these changes mark a significant milestone in regulatory governance, replacing 34 regulations with 6 regulations and introducing 2 new regulations, enhancing clarity and coherence in the regulatory landscape.
If you remember, the IRDAI approved a series of amendments to its reinsurance regulations back in August of 2023, hoping to promote a favourable business environment and “position India” as a prominent global reinsurance hub.
Now, with this new wave of changes, the Authority has noted that the measures are poised to propel the Indian insurance industry towards greater efficiency and effectiveness, leading towards the vision of “Insurance for All” by 2047.
“These regulations encompass pivotal domains such as safeguarding of policyholders’ interests, rural and social sector responsibilities, electronic insurance marketplace, insurance products and operation of foreign reinsurance branches, as well as aspects of registration, actuarial, finance, investment and corporate governance,” the IRDAI said.
Key among these changes is the IRDAI (Registration and Operations of Foreign Reinsurers Branches & Lloyd’s India) Regulations, 2024, which consolidates two regulations and intends to support the systematic development of the reinsurance sector in India by “promoting orderly growth and harmonising the existing legal and regulatory framework”.
The Authority observed that this particular change seeks to streamline the operations of entities engaged in reinsurance operations.
“By promoting transparency and stability, these regulations aim to create a conducive environment for the growth and expansion of the reinsurance sector, ultimately benefiting both insurers and policyholders in India,” the IRDAI added.
