The Insurance Regulatory and Development Authority of India (IRDAI) on May 25, 2026, issued a circular regarding the remuneration to Key Management Persons (KMPs).
The following has been stated:-
•The Insurance Regulatory and Development Authority of India has amended the Corporate Governance framework for insurers to strengthen transparency in remuneration of Key Management Persons (KMPs).
•Insurers must now disclose performance-linked parameters for KMP remuneration on their websites in an easy-to-understand manner, along with data for the previous three years.
•The revised framework requires remuneration policies to align with policyholder outcomes, risk management, financial soundness, claim responsiveness, grievance redressal, product performance, and removal of dark patterns.
•From FY 2026-27, insurers must assess KMP incentives based on mandatory performance indicators such as renewal ratios, expense management, claims settlement efficiency, and customer grievance handling.
•Quarterly and monthly disclosures relating to financial soundness, products, claims, and grievances have also been mandated.
•The amendments aim to improve accountability, governance standards, public transparency, and informed decision-making for policyholders.
The detailed circular is given in the document below.
[Circular No. IRDAI/F&I/CIR/MISC/72/5/2026]
