Future Regulation Of The Insurance Sector In India
- IJLLR Journal
- 17 minutes ago
- 1 min read
Siddhant Panchratna, Amity Law School, Noida
Dr. Meenu Sharma, Assistant Professor, Amity Law School, Noida
ABSTRACT
India’s insurance industry has experienced a dramatic change in the last 20 years due to the liberalization, technological development as well as heightened regulatory scrutiny. The regulatory framework should adapt to the new challenges as the sector gains size, complexity, and penetration with increasing challenges including digital disruption, climate risks, cyber threats, and consumer protection issues. This chapter is a critical analysis of the future direction of the insurance regulation in India with the necessity to have a more dynamic, technology-driven and risk-sensitive regulatory architecture. It examines the role of the Insurance Regulatory and Development Authority of India (IRDAI) towards innovation and financial stability and protection of the policyholders. The chapter also considers the best practices worldwide and how the same can be applied in the Indian environment especially in the areas of sandbox regulation, incorporation of InsurTech, and sustainability frameworks. Moreover, it sheds light on the major policy changes, such as liberalization of foreign direct investment (FDI), the move towards universal insurance coverage, and electronic regulation. The last section of the chapter reminds that the regulatory approach must be balanced to facilitate growth, inclusivity, and resilience in the Indian insurance industry.
Keywords: Indian insurance sector; insurance regulation; IRDAI; liberalization; foreign direct investment (FDI); InsurTech; regulatory sandbox; digital transformation; consumer protection; financial stability; climate risk; cyber risk; policyholder protection; universal insurance coverage; sustainability in insurance.
