The Insurance Regulatory and Development Authority of India (IRDAI) on March 22, 2024, issued Press Note on Regulatory Revamp.
At the 125th Authority meeting convened on Tuesday, March 19, 2024, at the IRDAI Head Office in Hyderabad, the Authority approved eight principle-based consolidated regulations, following the comprehensive review of regulatory framework for insurance sector.
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.
It marks a significant milestone in regulatory governance which has replaced 34 regulations with 6 regulations and introduction of 2 new regulations enhancing clarity and coherence in the regulatory landscape. The process involved extensive consultations with diverse stakeholders, including insurance industry, experts, and public at large ensuring a comprehensive consideration of varied perspectives in shaping the revised framework.
The following regulations have been approved by IRDAI in the 125th meeting:
• IRDAI (Rural, Social Sector and Motor Third Party Obligations) Regulations, 2024
• IRDAI (Bima Sugam - Insurance Electronic Marketplace) Regulations, 2024
• IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) Regulations, 2024
• IRDAI (Corporate Governance for Insurers) Regulations, 2024
• IRDAI (Insurance Products) Regulations, 2024
• IRDAI (Registration and Operations of Foreign Reinsurers Branches & Lloyd’s India) Regulations, 2024
• IRDAI (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024
• IRDAI (Protection of Policyholders’ Interests and Allied Matters of Insurers) Regulations, 2024
In conclusion, all of these measures are poised to propel the Indian insurance industry towards greater efficiency and effectiveness leading towards the vision of Insurance for All by 2047.
