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Irdai panel flags risks in merging insurers with non-insurance firms
The Khara-led panel submitted a confidential report to Irdai, warning that such mergers could pose potential risks to policyholders, the news report said.
Panel to draft FDI reform plan
In February 2025, the Irdai formed a seven-member committee to evaluate proposed changes to the Insurance Act, 1938. The panel was formed to draft a framework for implementing these amendments, the news agency PTI had reported.
Among the key proposals was raising the foreign direct investment (FDI) limit in the insurance sector to 100 per cent. Finance Minister Nirmala Sitharaman had announced in her Union Budget on February 1 that the increased limit would apply to companies that invest the entire premium in India. 'The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified,' she said.
The committee includes former ICICI Prudential Life MD and CEO NS Kannan, ex-United India CMD Girish Radhakrishnan, former Irdai member Rakesh Joshi, former RBI Executive Director Saurabh Sinha, MFIN MD and CEO Alok Misra, and legal expert L Vishwanathan.
Revamp may allow full FDI, expansion
The revised Insurance Act is expected to include provisions related to 100 per cent FDI, composite licences, increased penetration, and entry of new players. The committee will recommend regulatory frameworks and rules to operationalise these changes.
To implement these reforms, amendments are also expected in the Life Insurance Corporation Act, 1956, and the Irdai Act, 1999.
Irdai sets up panels for oversight
The insurance regulator has constituted panels comprising its whole-time members to investigate regulatory violations by insurance companies and intermediaries. This move was approved during the 132nd meeting of the authority, Irdai said in a statement issued on Tuesday.
'As part of enforcement function, to decide on the violations observed as regards the provisions of Insurance Act and Regulations issued thereunder, with respect to certain Insurers/ Insurance Intermediaries, panels of Whole-Time Members were formed,' the regulator said.
The decision comes amid ongoing concerns about data breaches and mis-selling of insurance policies within the sector.
Additionally, the regulator announced the formation of a separate panel of whole-time members to handle specific cases related to share transfer applications and other associated matters. This is part of the authority's effort to delegate powers and streamline regulatory processes. (With agency inputs)
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