The Insurance Regulatory and Development Authority of India (“IRDAI / Authority”) has released the Minutes of the 133rd Authority Meeting (“Minutes”) held on December 23, 2025 at Hyderabad.
Shri Ajay Seth (“Chairman”) presided over his first Authority Meeting after assuming charge as Chairman on September 1, 2025. Smt. Shalini Pandit, Joint Secretary, DFS, was welcomed as Part-time Member of the Authority pursuant to the notification dated December 3, 2025. The Authority also noted the leave of absence granted toShri Satyajit Tripathy and confirmed that the requisite quorum was present before commencement of deliberations.
Key Highlights of the Meeting
- The insurance industry recorded a premium growth of 9.86% up to November 2025, with total premium collections ofRs. 8.02 lakh crore.
- Life Insurance Premium: Rs. 5.80 lakh crore (Growth: 10.48%)
- General Insurance Gross Direct Premium: Rs. 2.22 lakh crore (Growth: 8.29%)
The Authority observed that premium growth has moderated compared to post-pandemic levels, indicating normalization in the sector.
- Health insurance premium collected up to November 2025 stood at Rs. 0.88 lakh crore, compared to Rs. 0.79 lakh crore during the corresponding period of the previous year, reflecting a growth of 11.39%.
- Premium collected by Standalone Health Insurers reached Rs. 0.26 lakh crore, registering a growth of 13.04%.
- Health insurance has emerged as the largest segment within General Insurance, contributing approximately 41% of total premiums and overtaking Motor Insurance.
- Assets Under Management (AUM) of the insurance industry increased to Rs. 78.48 lakh crore as on September 30, 2025, compared to Rs. 72.08 lakh crore in the previous year. Investments remained concentrated in:
- Government Securities – approximately 59%
- Other Approved Investments – approximately 30%
- Claims experience increased significantly across the industry:
- Life insurer benefit payouts increased to approximately Rs. 6.3 lakh crore in FY2025 (from approximately Rs. 4 lakh crore in FY2021).
- Non-life incurred claims increased to approximately Rs. 1.9 lakh crore.
The Authority observed that health and motor insurance continue to account for the largest share of claims, with rising medical and repair costs contributing to structural claims inflation.
- The Authority noted that GST exemption on individual life and health insurance policies has reduced overall premium costs and improved affordability for policyholders.
- The Sabka Bima Sabki Raksha (Amendments to Insurance Laws) Act, 2025 was highlighted as a significant legislative reform aimed at:
- Improving insurance penetration.
- Enhancing ease of doing business.
- Strengthening governance standards.
- Promoting adoption of technology and global best practices.
- Enhancing policyholder protection.
- Facilitating capital augmentation.
- FDI inflows in insurance companies as on September 30, 2025 stood at Rs. 84,307 crore, while paid-up capital increased to approximately Rs. 0.85 lakh crore.
During FY2025-26 (up to December 2025), FDI inflows amounted to approximately Rs. 545 crore. - The Authority reviewed regulatory and licensing activities and noted:
- 8 applications at the R1 stage.
- 1 application at the R2 stage.
- Several applications are under detailed examination.
- Approvals for transfer of shareholding in both life and non-life insurers have been granted during the year.
Agenda Items Discussed
1. Annual Report 2024-25
The Authority noted the circular resolution approving the IRDAI Annual Report 2024-25 and advised that future reports should contain more comprehensive information and be placed before Parliament during the Monsoon Session. It was also noted that the Annual Report 2024-25 has already been laid before both Houses of Parliament in December 2025.
2. Creation of Chief Vigilance Officer (CVO)
The Authority approved the creation of the post of Chief Vigilance Officer (CVO) in the cadre of Executive Director. It also decided to request continuation of the existing arrangement of appointing a CVO from another financial or regulatory institution on an additional charge basis.
3. Implementation of Risk Based Capital (RBC) Framework
The Authority reviewed the implementation of the Risk Based Capital (RBC) Framework, including findings of the Second Quantitative Impact Study (QIS2). It approved drafting and publication of draft regulations for stakeholder consultation.
The Authority also noted that the existing solvency framework is not fully risk-based and does not completely align with the Insurance Core Principles (ICP) and FSAP recommendations, necessitating transition to a more risk-sensitive regime.
4. Implementation of Ind AS in the Insurance Sector
The Authority deliberated on the implementation of Ind AS, including developments relating to IFRS 17 / Ind AS 117, impact assessments undertaken by insurers and stakeholder consultations. The Chairman was authorised to determine the implementation timeline, manner of implementation and issuance of the consultation paper along with draft regulations.
5. Conflict of Interest Framework
The Authority considered the recommendations of SEBI’s High-level Committee Report on Conflict of Interest, Disclosures and Related Matters. It approved a review of the applicability of these recommendations within the existing IRDAI framework and agreed to issue an exposure draft for stakeholder consultation. The Authority also decided that the recommendations should be suitably customised to meet the specific requirements of the insurance sector.
6. Chairman’s Closing Remarks
- Persistent underwriting losses in the non-life insurance sector.
- Increasing surrender trends in life insurance business.
- Rising commission costs.
- Growing policyholder complaints.
- Increasing dependence on cross-border reinsurance arrangements.
- High acquisition and commission costs affecting policyholder value and persistency.
- Dependence on investment income for profitability in the non-life segment.
- Need for periodic review of industry performance and key regulatory parameters.
Attachment
Source Category: IRDAI
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