IRDAI greenlights reforms, policyholder fund norms, new general insurer
The IRDAI has approved significant regulatory reforms, including new investment norms and the establishment of a Policyholders’ Education and Protection Fund. These changes aim to improve insurance literacy, increase accountability for intermediaries, and facilitate the implementation of the 2025 Sabka Bima Sabki Raksha Act.
Why it matters
These reforms are designed to modernize the insurance sector, enhance consumer protection, and streamline operational processes for insurers in India.
Insurance regulator IRDAI approved various regulatory, supervisory and developmental reforms, including the Policyholders’ Education and Protection Fund (PEPF) regulations, besides permitting a new general insurer at its meeting on Tuesday (July 28, 2026) .
Crucial to paving the way for implementation of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 (SBSR Act), the reforms range from those that provide insurers with greater operational and financial flexibility through liberalised investment norms and a facilitative framework for capital infusion and corporate restructuring.
Streamlining of provisions relating to transfer of shares and amalgamations while strengthening actuarial oversight and financial governance are also part of the exercise, the regulator said on approvals to 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.
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