Brief Overview:

IRDAI has amended the investment, actuarial and financial reporting framework for insurers to give operational effect to the Sabka Bima Sabki Raksha Act. The amendments open up new investment avenues— including eligible private companies, repo/reverse repo, government securities lending and infrastructure Special Purpose Vehicle (“SPV”) debt, while tightening actuarial governance, solvency monitoring and regulatory reporting.

Technical Details:

What changes:

1) Allows repo, reverse repo and Government Securities Lending Transactions within specified prudential limits.

2) Opens investment in eligible private limited companies and qualifying infrastructure SPV debt.

3) Caps reverse repo in corporate debt securities at 10% of the applicable fund / investment asset base.

4) Sharpens solvency and financial reporting through Financial Condition Report (“FCRs”), valuation surplus, incurred but not reported claims (“IBNR”) and stress-testing disclosures.

5) Replaces the old Actuarial Report and abstract with the revised Actuary Report regime.

Takeaways:

This is a meaningful shift for insurers: IRDAI is giving them a wider investment toolkit, but with a clear expectation of stronger actuarial discipline, closer solvency monitoring and more robust financial reporting. The amendments therefore create more room to deploy capital efficiently, while increasing accountability on how that capital is valued, monitored and reported.

For further details, please see:

IRDAI (Actuarial, Finance and Investment Functions of Insurers) (Second Amendment) Regulations, 2026

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