India

IRDAI's public consultation paper proposes cutting life insurers' expense-of-management limit to 15% of gross direct premium within two years and 12.5% within five, replacing the distributor landscape with three categories, and adding claw-backs for mis-selling, with comments due on October 25, 2026 and reports that the regulator may extend the window.

At its 137th meeting on July 28, 2026, chaired by Ajay Seth, IRDAI approved seven regulations aligning the rulebook with the Sabka Bima Sabki Raksha Act, 2025, including the Policyholders' Education and Protection Fund Regulations and stricter intermediary rules aimed at curbing mis-selling.

For the six months to September 30, 2026, India's HDFC Life reported profit after tax of ₹1,119 crore, value of new business of ₹2,037 crore (up 12.1%) at a 24.7% margin, and assets under management of about ₹4.1 lakh crore; second-quarter profit was ₹508 crore, 16.9% lower than the first quarter.

The Cabinet Committee on Economic Affairs cleared the sale on October 14 after a process that began in 2022; the shares fell about 7% the next day as the price came in below the market, and RBI and competition approvals are still needed.

India's HDFC Life reported first-half value of new business of Rs 2,037 crore at a 24.7% margin, approved a GIFT City office and up to Rs 500 crore of subordinated debt, and flagged near-term friction from IRDAI's proposed expense limits.

SEBI chairman Tuhin Kanta Pandey said on October 15 that the market regulator has written to the insurance regulator, as it also works on adding bank deposit information to the statement investors receive from depositories.

India's ICICI Life reported a Rs 374 crore second-quarter profit and Rs 712 crore of new business value, with protection and annuity growth in the first half, while some brokerages flagged a margin below their forecasts.

India's largest life insurer told exchanges on October 12 it will put an annuity plan and two health protection plans on sale on October 19; here is what has been reported and what buyers should verify.

India's insurance regulator has proposed product-level commission ceilings and lower expense-of-management limits, a draft that could reshape how banks, brokers and agents sell policies; feedback closes October 25.

India's central bank raised its policy rate by 25 basis points in a unanimous vote, its first hike since February 2023, citing inflation risks from oil near $100, a deficient monsoon and a weaker rupee.

Prudential HCL Health Insurance received its IRDAI registration on July 1 and announced on August 20 that it has begun operations with an AI-enabled, direct-to-consumer model alongside agents.

IRDAI's circular of May 25, 2026, amending the 2024 Master Circular on Corporate Governance for Insurers, makes six performance parameters, covering financial soundness, product performance, claims responsiveness, grievance redressal, Indian Accounting Standards and removal of dark patterns, account for 50% of key managerial personnel variable pay from FY 2026-27 and requires public disclosure of the underlying data.

Health insurance rose from 38.64% of insurance complaints in FY20 to 61.49% in FY25 while representing 10.68% of premiums, Lok Sabha replies show health complaints of 47,658, 64,365 and 73,729 (to February) in FY24 to FY26, and a July 2026 reply confirmed IRDAI collects overall repudiation rates (8% of 3.26 crore claims) but not the reasons for denials.

On June 19, 2026 IRDAI announced a seven-member working group, chaired by IIIT Hyderabad's Sandeep K. Shukla, to map AI use in insurance and propose a framework for ethical, transparent and explainable AI, with recommendations due in three months; they will not automatically become binding rules.

Lloyd's announced on June 18, 2026 that ICICI Lombard General Insurance will issue local policies in India on behalf of Lloyd's managing agents for selected lines, adding to Lloyd's existing routes into the market through cross-border reinsurance, Lloyd's India and its GIFT City platform.

Reported on May 2, 2026, the government allowed up to 100% foreign investment in insurance companies through the automatic route, requiring at least one resident Indian citizen as chair, managing director or CEO, while foreign investment in LIC stays at 20%.

India's insurance regulator published a draft on June 17, 2026 setting a formal procedure for making regulations and issuing subsidiary instructions, with at least 21 days of public comment and a review of every regulation every three years; comments were due by July 8.

IRDAI's exposure draft (comments until July 6, 2026) would let non-operative holding companies merge into their insurer subsidiaries, restructure share-transfer approval thresholds, allow foreign SPVs from FATF-compliant jurisdictions and reserve insurance-related names for insurers.

Parliament passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill on December 16-17, 2025, raising the foreign investment limit in Indian insurers from 74% to 100% and giving IRDAI wider powers over intermediaries and boards.

IRDAI's May 25, 2026 circular amending its 2024 master circular on corporate governance makes six customer- and soundness-related parameters worth 50% of the assessment for variable pay of key management personnel, effective from FY 2026-27.

Policybazaar data reported on May 9, 2026 shows travel insurance purchases up 22% year on year, with more travellers choosing $250,000 cover, 75% taking medical cover and solo travel above 76% of trips.

Citing the Allianz Global Insurance Report 2026, Business Today reports India's insurance premiums grew 9.4% in 2025 to ₹13.96 lakh crore ($145.9 billion) and are projected to grow 10.7% a year to 2036, with health the fastest segment at 12.5%.

India's amended insurance law, passed in December 2025 and in force from February 5, 2026, lets foreign investors hold up to 100% of an insurer, lowers reinsurance capital requirements and gives the regulator new powers.