IRDAI, Insurers Discuss Relaxing Investment Rules Amidst Insurance Act Amendments

For insurers that sell policies with guarantees or long-dated commitments, persistently low returns also compress margins and reduce flexibility in product design, industry executives said.

Banking

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Moneycontrol•11-01-2026, 19:54

IRDAI, Insurers Discuss Relaxing Investment Rules Amidst Insurance Act Amendments

•IRDAI and insurers are in talks to allow higher exposure to corporate debt, private companies, and alternative investments.
•The move aims to improve returns and broaden investment avenues for insurers, making insurance more attractive.
•RBI flagged concentration risk in government securities, prompting a renewed focus on investment norms.
•Amendments to the Insurance Act give IRDAI greater flexibility to adjust asset-allocation rules without parliamentary approval.
•The legal shift consolidates Sections 27A, 27B, 27C, and 27D into Section 27, moving most investment rules to IRDAI regulations.

Why It Matters: IRDAI and insurers are exploring relaxed investment rules to boost returns and broaden options for the industry.

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