India’s Insurance Regulatory and Development Authority of India (IRDAI) has licensed two new entities and continued work on implementing recent amendments to insurance law.

At its 134th meeting on March 9, the authority granted certificates of registration to one reinsurer, Allianz Jio Reinsurance Limited, and one general insurer, Kiwi General Insurance Limited. The approvals permit both companies to commence operations in India in line with the prevailing regulatory framework. The entry of the two entities adds to the pool of risk carriers in India. The additional capacity and counterparties may influence future structures for reinsurance programs, fronting arrangements, and other partnerships linked to Indian business.

SBSR Act prompts regulatory changes

A principal agenda item at IRDAI’s 134th meeting was the regulatory work required following the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 (SBSR Act). The law, notified on Dec. 21, 2025, and effective from Feb. 5, 2026, amends the Insurance Act, 1938, and the IRDA Act, 1999. These amendments require the Authority to issue new regulations and revise existing ones to reflect the updated statutes. During the meeting, IRDAI discussed the set of regulations that need to be framed under the SBSR Act and gave in-principle approval to draft and publish them for stakeholder consultation.

The step is aimed at facilitating the transition to the updated regime and embedding the SBSR Act’s provisions into day-to-day supervision. For domestic and foreign insurers operating in India, including Asian groups with local subsidiaries or joint ventures, the forthcoming drafts are expected to clarify requirements relating to capital, governance, product structures, and distribution once finalized. The regulatory adjustments follow earlier policy measures such as the increase in the foreign direct investment cap in insurance, initiatives on distribution, and changes connected to goods and services tax (GST). These changes are affecting how capital, technology, and distribution models are deployed in India’s insurance sector.

IRDAI holds virtual engagement with US stakeholders

Separately, IRDAI conducted a virtual session on March 9, with US-based market participants in cooperation with the US-India Strategic Partnership Forum (USISPF). The meeting brought together stakeholders from across the financial services sector to discuss developments in India’s insurance market, including the SBSR Act and other regulatory initiatives. During the engagement, IRDAI outlined how the SBSR Act and ongoing reforms – including the adoption of Indian Accounting Standards (Ind AS) for insurers – are expected to affect market conduct, financial reporting, and risk management practices. Participants shared views on regulatory trends, cross-border business opportunities, and broader developments in insurance and financial services.

Ajay Seth, chairman of IRDAI, said such exchanges form part of the authority’s approach to international engagement. “Engaging with international stakeholders allows us to better understand global perspectives, share our regulatory approach, and better align with evolving market dynamics,” he said. IRDAI reiterated that it intends to maintain ongoing engagement with domestic and overseas stakeholders as it seeks to support a stable and transparent regulatory environment. USISPF, a non-profit, non-governmental, and non-partisan organisation with offices in Washington, D.C., and New Delhi, facilitates interaction among businesses, policymakers, and other stakeholders to support economic and strategic ties between India and the US.

Growth projections show India outpacing major markets

The regulatory activity is occurring against the backdrop of projections that India will record higher real premium growth than several other major insurance markets over the medium term. Swiss Re Institute’s report “India’s economic and insurance market outlook 2026-2030: resilient and rising amid global shifts” forecasts real annual insurance premium growth of 6.9% between 2026 and 2030. The projected rate exceeds Swiss Re’s expectations for markets such as China, North America, and advanced Asia-Pacific over the same period.

The study attributes the outlook to macroeconomic conditions and expanding insurance demand. It notes that regulatory reforms by IRDAI and wider government measures – including a higher FDI limit, distribution changes, and GST-related adjustments – are influencing sector structure, capital flows, and access to insurance. In life insurance, where India is already the second-largest emerging-market life segment, real premiums are projected to grow at about 6.8% per year over the next five years. Factors cited include broader distribution networks, demand for retirement-related products, and credit growth. In non-life, Swiss Re forecasts average annual real premium growth of about 7.2% for health insurance and 7.5% for motor insurance over 2026-2030, reflecting trends in healthcare costs and vehicle ownership.