IRDAI forms review panel to look into industry reforms

The Insurance Regulatory and Development Authority of India (IRDAI) has formed a high-powered committee to review significant changes to the Insurance Act of 1938, that will look into proposed amendments to FDI in the insurance sector and ways to improve market penetration.

The panel consisting of seven members will be chaired by Dinesh Khara, the former chairman of India’s largest bank, State Bank of India. The existing Insurance Act, established back in 1938, is considered outdated by contemporary standards, prompting the government to pursue reforms for clarity and operational efficiency.

The government’s reform proposals have been met with enthusiasm, especially the plan to increase the cap on FDI from 74% to 100%. This bold move is intended to attract more international players and increase the influx of capital, potentially improving insurance penetration across the Indian market.

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