How IRDAI’s latest reforms could reshape India’s insurance sector

The reforms come at a time when India is seeking to deepen insurance coverage and attract fresh capital into the sector through 100% foreign investment. PexelsIndia’s insurance sector regulator has unveiled one of its most significant reform packages in recent years. These are aimed at making the insurance sector more flexible, better governed and more attractive to investors, while strengthening protection for policyholders. The changes, approved at the Insurance Regulatory and Development Authority of India (IRDAI) board meeting this week, span capital rules, investment norms, governance standards, distribution practices and policyholder protection. They also operationalise provisions of the recently enacted Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, which seeks to