IRDAI Press note on Insuring India by 2047 – New landscape for Insurance Sector

IRDAI has issued a press note dated November 25, 2022 with regards to Insuring India by 2047 – New landscape for Insurance Sector. The note highlights the commitment of the Authority to enable appropriate life, health and property insurance cover to every citizen of India. The press note also enumerates various efforts taken by the Authority towards creating a Regulatory architecture which are helpful in promoting wider choice, accessibility and affordability to policyholders

Further, in order to achieve the objectives and strengthen the three pillars of the entire insurance ecosystem viz. insurance customers (policyholders), insurance providers (insurers) and insurance distributers (intermediaries), Authority in its 120 th meeting approved the following:

1. Im portant proposals:

• Registration of Indian Insurance companies – Amendments to regulations pertaining to registration of Indian insurance companies and simplification of the process for setting up insurance company.
• Increase in tie-up limits for intermediaries – Increase in maximum number of tie ups with Corporate Agents, IMFs have been proposed in order to enable policyholder to have wider choice and access to various distribution channel.
• Regulatory sandbox – Experimentation time for insurers/intermediaries has been increased from 6 months to 36 months and approvals to be provided on continuous basis. Provision to review rejected application have been introduced.
• Other forms of Capital – The requirement of approval for raising other forms of capital i.e. subordinate debt and/or preference shares has been dispensed with and the limits of raising such capital have been enhanced.
• Appointed Actuary – Responsibility on Appointed Actuary has been enhanced and actions can be taken for risk affecting solvency position of the Company. Obligations have also been placed on insurers to ensure that the AA can discharge his responsibilities appropriately.
• Solvency norms applicable to insurers – The period for considering central/state Government premium dues have been increased from 180 days to 365 days and other relaxations with respect to crop insurance have also been introduced.

2. Other major interventions

• Listing of insurers in the stock exchanges (Final approval to Go-digit General Insurance Company for listing and in-principle approval to IndiaFirst Life Insurance Company Limited)
• Merger of Exide Life Insurance Co. Ltd. with HDFC Life Insurance Co. Ltd.
• Registration of Kshema General Insurance Co. Ltd

2022-11-25 IRDAI Press note on Insuring India by 2047 – New landscape for Insurance Sector

Source category: IRDAI

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• /2022/118_Insuring_India_by_2047_-_New_landscape_for_Insurance_Sector.pdf