IRDAI’s 2026 Second Amendment Regulations: Detailed Overview of Responses to Public Comments

The Insurance Regulatory and Development Authority of India has issued a consolidated response to the comments and suggestions it received on the Exposure Draft of the Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) (Second Amendment) Regulations, 2026.

These comments were submitted by insurers, professional advisory firms and individual stakeholders during the consultation window from 19 June 2026 to 10 July 2026. After examining the feedback, the Authority presented the matter before the Competent Authority and has made specific revisions to the draft regulations while retaining some core requirements rooted in the Insurance Act, 1938.

This article explains, in a structured manner, the main issues raised by stakeholders and the corresponding responses and regulatory positions adopted by the Insurance Regulatory and Development Authority of India (IRDAI).

The Exposure Draft deals with three broad functional pillars of insurance entities:

  • Actuarial functions
  • Finance functions
  • Investment functions

The proposed amendments particularly impact:

  • Foreign Reinsurer’s Branches (FRBs) operating in India
  • Investment norms for insurers’ funds, including policyholders’ funds
  • The role and responsibilities of the Certifying Actuary

The Authority’s responses are anchored in amendments to the Insurance Act, 1938, especially:

  • Section 12A – expanding the scope and powers of the Certifying Actuary
  • Section 13 – relating to investigations into the affairs of insurers
  • Section 49 – relating to actuarial valuations and surplus distribution
  • Section 27(3) – imposing investment restrictions in promoter-owned or controlled entities

Public Consultation Process

The Authority invited public comments on the Exposure Draft, and submissions were received between 19 June 2026 and 10 July 2026.

Stakeholders included:

  • Life and general insurers
  • Foreign reinsurers operating through branches in India
  • Professional actuarial and consulting firms
  • Individual professionals and industry participants

Based on these representations, IRDAI has:

  1. Accepted certain suggestions and modified the draft accordingly.
  2. Partially accepted some inputs and adjusted limits or formats.
  3. Rejected some recommendations where they conflicted with statutory provisions or prudential objectives.

Treatment of Financial Condition Report (FCR) and ‘Statement of Surplus’ for Foreign Reinsurer’s Branches

Stakeholder Concern

Stakeholders requested:

  • Either a complete waiver, or
  • A phased or staggered implementation

of the requirement to file:

  • Financial Condition Report (FCR), and
  • Statement of Surplus

in respect of Foreign Reinsurer’s Branches (FRBs).

The underlying concern was the compliance burden on FRBs and the transitional challenges in aligning systems and reporting with the new formats.

IRDAI’s Position and Clarification

IRDAI has clarified that:

  • The obligation to submit FCR and Statement of Surplus arises from the amended provisions of Section 13 and Section 49 of the Insurance Act, 1938.
  • These statutory requirements cannot be dispensed with through regulation.

However, taking note of the practical difficulties, IRDAI has provided relief in the form of format simplification:

The format of the Financial Condition Report (FCR) for Foreign Reinsurer’s Branches has been rationalised, while the substantive requirement to submit the report continues to apply.

In other words, FRBs remain obliged to comply with the reporting mandates, but the reporting templates have been streamlined to ease the administrative burden.

Engagement of Certifying Actuary by Multiple Foreign Reinsurer’s Branches

Stakeholder Suggestion

Stakeholders requested that a single Certifying Actuary be permitted to simultaneously perform the role of Certifying Actuary for more than one Foreign Reinsurer’s Branch.

The argument likely stemmed from:

  • Limited availability of suitably experienced actuaries
  • Efficiency and cost considerations for FRBs

IRDAI’s Response

IRDAI has rejected this suggestion and maintained a one-to-one restriction, clarifying that: