The Insurance Regulatory and Development Authority of India (IRDAI) has approved the grant of Certificate of Registration to ProTec General Insurance Ltd, marking the fourth insurance license approval in calendar year 2026. As reported by The Economic Times, this joint venture between the M Pallonji Group and True North's Divya Sehgal will enable the company to undertake general insurance business in accordance with applicable regulatory framework. The approval follows earlier licenses granted to Kiwi General Insurance, Prudential HCL Health Insurance and Allianz Jio Reinsurance, demonstrating strong investment interest in the Indian insurance sector and momentum generated by reforms under the Sabka Bima Sabki Raksha (SBSR) Act. The approvals were cleared at the regulator's meeting held in Hyderabad on July 28, with the four registrations granted so far including two general insurers, one health insurer and one reinsurer, according to IRDAI.
In a landmark policyholder-centric move, IRDAI has made it mandatory to tag the authorised salesperson to every insurance proposal, policy and certificate, finalising a headline measure aimed at curbing mis-selling across the distribution chain. As reported by Mint, this decision comes just two days after IRDAI chairman Ajay Seth publicly made the case for it at the Insurance Brokers Association of India's silver jubilee conclave on 26 July. Seth emphasised that tackling mis-selling would require holding individual salespeople accountable, not just intermediaries, and that insurers should be able to trace every policy back to the point-of-sale person, agent or broker who sold it. The regulator noted that such a database did not yet exist and would be addressed through a proposed Public Insurance Registry. The intermediaries framework was also amended to introduce perpetual registration with an annual fee in place of periodic renewals, alongside enhanced disclosure and governance requirements extending to third-party administrators and surveyors.
The Insurance Regulatory and Development Authority of India (IRDAI) has implemented comprehensive regulatory, supervisory and developmental reforms in its 137th meeting held on Tuesday. According to reports from The Hindu BusinessLine, these reforms align with the implementation of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 (SBSR Act). 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. At its board meeting, IRDAI also approved a series of regulatory reforms aimed at giving insurers greater operational and financial flexibility, including liberalised investment norms and streamlined processes for capital infusion, restructuring, share transfers and amalgamations. The regulator cleared the second amendment to its actuarial, finance and investment regulations, liberalising investment norms and easing capital infusion, and the registration and amalgamation amendment streamlining share transfers and corporate restructuring.
To further strengthen policyholder protection, the authority has approved amendments to the regulations governing insurance intermediaries. According to reports from The Hindu BusinessLine, a key reform is the mandatory tagging of the authorised salesperson 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 introduced perpetual registration supported by an annual fee regime instead of periodic renewals, streamlining regulatory compliance and aligning the framework with the SBSR Act and Foreign Investment Rules. As reported by Mint, these changes aim to reduce the compliance burden and strengthen governance through enhanced disclosure and accountability.
A major policyholder-centric reform approved by the authority is the IRDAI (Policyholders' Education and Protection Fund) Regulations, 2026, which operationalises the Policyholders' Education and Protection Fund (PEPF) constituted under Section 16A of the IRDA Act, 1999, as introduced by SBSR Act. As reported by The Hindu BusinessLine, 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. The regulator also 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.
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 and facilitating greater capital inflows. According to reports from The Hindu BusinessLine, the authority also approved the IRDAI (Manner and Procedure for Imposition of Penalties) Regulations, 2026, establishing a transparent, uniform and proportionate framework for enforcement. The regulator is also preparing a consultation paper on distribution reforms, expected around the end of July, as reported by Mint. Under the current framework, distributors can earn up to 40% of first-year premium on certain products, much of it paid upfront. The regulator is addressing commission levels separately, with Seth previously urging insurers to link incentives to the quality of sales rather than volumes, and to disincentivize unsuitable product sales and mis-selling.
