IRDAI draft rules curb mis-selling and ease foreign reinsurer entry
India's insurance regulator, IRDAI, is rolling out draft rules that aim to fix mis-selling, boost investment choices, and make it easier for foreign reinsurers to enter the market.
These changes follow the new Sabka Bima Sabki Raksha law from 2025.
Public feedback will be open in early July, so if you care about how your insurance works, now's your chance.
IRDAI proposes supervisors investments and disclosures
To stop dodgy sales tactics (over 26,000 complaints in 2024-25!), IRDAI wants every policy tied to its sales agent and banks (which brought in nearly half of private life premiums) to appoint sales supervisors.
Insurers could soon lend government securities and invest up to 5% of their surplus in select private companies.
Plus, intermediaries earning above a certain amount must post commission details online, but the commission sizes themselves won't change.
And for global players: entering India's insurance scene might get a lot simpler.