The Insurance Regulatory and Development Authority of India (IRDAI), in its 137th Authority Meeting held on 28 July 2026, approved a series of regulatory, supervisory and developmental reforms to advance implementation of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025. The Authority approved amendments to the IRDAI (Actuarial, Finance and Investment Functions of Insurers) (Second Amendment) Regulations, 2026 and the IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) (Amendment) Regulations, 2026 to provide greater operational and financial flexibility. It also approved the IRDAI (Policyholders’ Education and Protection Fund) Regulations, 2026 to operationalise the Policyholders’ Education and Protection Fund under Section 16A of the IRDA Act, 1999, amendments requiring mandatory tagging of authorised sales persons to insurance proposals, policies and certificates, and the IRDAI (Manner and Procedure for Imposition of Penalties) Regulations, 2026. The Authority granted a Certificate of Registration to M/s ProTec General Insurance Limited, noted it was the fourth registration in 2026, observed that two insurers had increased foreign shareholding beyond 74 per cent following the amended framework permitting up to 100 per cent foreign investment, and reaffirmed its commitment to implementing SBSR Act reforms.
Insurance Regulatory and Development Authority of India
Press Release | 29th July 2026
IRDAI advances implementation of SBSR Act Reforms, strengthens Policyholder Protection and approves New General Insurer in its 137th Authority Meeting
In its 137th Meeting held on Tuesday, 28th July 2026, at its Head Office in Hyderabad, the Authority considered a range of regulatory, supervisory and developmental reforms aimed at strengthening the insurance sector and advancing the implementation of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 (SBSR Act).
Supporting growth of the insurance sector, the Authority approved key amendments through the IRDAI (Actuarial, Finance and Investment Functions of Insurers) (Second Amendment) Regulations, 2026 and the IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) (Amendment) Regulations, 2026. These reforms provide insurers with greater operational and financial flexibility through liberalised investment norms, a facilitative framework for capital infusion and corporate restructuring, and streamlined provisions relating to transfer of shares and amalgamations while strengthening actuarial oversight and financial governance. Together, these measures improve ease of doing business, facilitate capital formation, enhance financial resilience and support the long-term growth of insurers without compromising policyholder interests.
A major policyholder-centric reform approved by the Authority is the IRDAI (Policyholders’ Education and Protection Fund) Regulations, 2026, which operationalise the Policyholders’ Education and Protection Fund (PEPF) constituted under Section 16A of the IRDA Act, 1999, as introduced by SBSR Act. The PEPF establishes a dedicated institutional mechanism to promote insurance awareness and literacy initiatives, strengthen grievance redressal mechanisms, leverage technology to improve policyholder services, facilitate tracing and recovery of unclaimed insurance amounts, and support other initiatives aimed at empowering and safeguarding policyholders.
To further strengthen policyholder protection, the Authority has approved amendments to the regulations governing insurance intermediaries. A key reform is the mandatory tagging of the authorised sales person to every insurance proposal, policy and certificate of insurance. The requirement enhances accountability and traceability across the insurance distribution process, strengthens regulatory oversight and promotes greater transparency for policyholders.
The amendments also introduce perpetual registration supported by an annual fee regime instead of periodic renewals, streamline regulatory compliance, align the framework with the SBSR Act and the Foreign Investment Rules, while strengthening governance and business conduct through enhanced disclosure and accountability requirements. These reforms reduce compliance burden, enhance accountability and enable intermediaries, third-party-administrators and surveyors to focus on delivering better and more accessible services to policyholders.
Strengthening regulatory certainty and reinforcing trust in the supervisory framework, the Authority approved the IRDAI (Manner and Procedure for Imposition of Penalties) Regulations, 2026, establishing a transparent, uniform and proportionate framework for enforcement under the Insurance Act, 1938 and the IRDA Act, 1999. The Regulations provide a structured process for initiation of proceedings, issuance of show-cause notices and passing of reasoned orders, thereby promoting consistency, fairness and transparency in regulatory actions. The framework enhances regulatory certainty for regulated entities while strengthening accountability and public confidence in the insurance sector.
Approval was also accorded for the grant of Certificate of Registration to M/s ProTec General Insurance Limited, enabling the company to undertake general insurance business in accordance with the applicable regulatory framework. This marks the fourth registration granted by IRDAI during the calendar year 2026, comprising two general insurers, one health insurer and one reinsurer, underscoring the strong investment interest in the Indian insurance sector and the positive momentum generated by the reforms ushered in under the SBSR Act.
The Authority also noted encouraging progress in implementing the capital reforms introduced under the SBSR Act. Pursuant to the amended legal framework permitting up to 100 per cent foreign investment in insurers, two insurers (one life insurer and one general insurer) have already increased foreign shareholding beyond the earlier threshold of 74 per cent, signalling enhanced investor confidence, facilitating greater capital inflows and reaffirming India’s attractiveness as a preferred destination for long-term investment in the insurance sector.
The Authority reaffirmed its commitment to expeditious implementation of the reforms envisaged under the SBSR Act to promote sustainable growth of the insurance sector, strengthen policyholder protection, facilitate innovation, attract long-term investment, and further enhance ease of doing business through a balanced and responsive regulatory framework.
