IRDAI overhauls regulations for Indian insurers, prioritising business ease

A committee has been placed to form recommendations to the IRDAI.

The Insurance Regulatory and Development Authority of India (IRDAI) is reviewing its regulations on ease of doing business and minimising compliance hurdles faced by stakeholders whilst policyholder interest is maintained.

After recommendations were brought out by the Regulations Review Committee (RRC), to IRDAI on (Registration, Capital Structure, Transfer of Shares and Amalgamation of Indian Insurance Companies) Regulations 2024, the following changes were made:

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• Removal of requirement of prior-approval of the IRDAI for listing of shares of insurers on stock exchanges subject to compliance of specified conditions
• Enabling Provision for relaxation of lock-in period in case the insurer or the shareholder is in financial distress or to facilitate amalgamation of insurers or shareholders.
• Provide more clarity on the capital structure of the applicants seeking new Registration.
• Provide more clarity on applicability of requirement of prior- approval for transfer of shares.

Feedback from stakeholders and the general public on the exposure draft can be received on or before 23 Feb.