Insurance concept, Businessman holding red umbrella on falling rain with protect with icon business, health, financial, life, family, accident and logistics insurance on city background
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ipopba
The Insurance Regulatory and Development Authority of India (IRDAI) has brought in a slew of regulatory, supervisory and developmental reforms in line with the implementation of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 (SBSR Act).Introduction of perpetual registration of insurance intermediaries, grant of Certificate of Registration to ProTec General Insurance and operationalisation of the Policyholders’ Education and Protection Fund (PEPF) were among the key reforms introduced by the regulatorKey amendmentsIn its 137th meeting held here on Tuesday, the authority approved key amendments through the IRDAI (Actuarial, Finance and Investment Functions of Insurers) (Second Amendment) Regulations, 2026 and the IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) (Amendment) Regulations, 2026. These reforms provide insurers with greater operational and financial flexibility through liberalised investment norms, a facilitative framework for capital infusion and corporate restructuring, and streamlined provisions relating to transfer of shares and amalgamations while strengthening actuarial oversight and financial governance, the insurance regulator said in a release on Wednesday. “Together, these measures improve ease of doing business, facilitate capital formation, enhance financial resilience and support the long-term growth of insurers without compromising policyholder interests,” it said. Approval was accorded for the grant of Certificate of Registration to ProTec General Insurance Ltd, enabling the company to undertake general insurance business in accordance with the applicable regulatory framework. This marks the fourth registration granted by IRDAI during 2026, comprising two general insurers, one health insurer and one reinsurer.A major policyholder-centric reform approved by the authority is the IRDAI (Policyholders’ Education and Protection Fund) Regulations, 2026, which operationalise the Policyholders’ Education and Protection Fund (PEPF) constituted under Section 16A of the IRDA Act, 1999, as introduced by SBSR Act.The PEPF establishes a dedicated institutional mechanism to promote insurance awareness and literacy initiatives, strengthen grievance redressal mechanisms, leverage technology to improve policyholder services, facilitate tracing and recovery of unclaimed insurance amounts, and support other initiatives aimed at empowering and safeguarding policyholders.INTERMEDIARIESTo further strengthen policyholder protection, the authority has approved amendments to the regulations governing insurance intermediaries. A key reform is the mandatory tagging of the authorised salesperson to every insurance proposal, policy and certificate of insurance. The requirement enhances accountability and traceability across the insurance distribution process, strengthens regulatory oversight and promotes greater transparency for policyholders.The amendments also introduced perpetual registration supported by an annual fee regime instead of periodic renewals, streamline regulatory compliance, align the framework with the SBSR Act and the Foreign Investment Rules.The authority approved the IRDAI (Manner and Procedure for Imposition of Penalties) Regulations, 2026, establishing a transparent, uniform and proportionate framework for enforcement under the Insurance Act, 1938 and the IRDA Act, 1999. The regulations provide a structured process for initiation of proceedings, issuance of show-cause notices and passing of reasoned orders, thereby promoting consistency, fairness and transparency in regulatory actions. The framework enhances regulatory certainty for regulated entities while strengthening accountability and public confidence in the insurance sector.Pursuant to the amended legal framework permitting up to 100 per cent foreign investment in insurers, two insurers (one life insurer and one general insurer) have already increased foreign shareholding beyond the earlier threshold of 74 per cent, signalling enhanced investor confidence, facilitating greater capital inflows and reaffirming India’s attractiveness as a preferred destination for long-term investment in the insurance sector.Published on July 29, 2026
