Irdai issues circular to create single reference for all periodic returns

The insurance regulator has taken up a comprehensive review of the regulatory framework for the insurance sector, to facilitate ease of doing business and reduce compliance burden

The Insurance Regulatory and Development Authority of India (Irdai) on Friday issued a master circular on submission of returns. It is aimed at creating a single reference for all periodic returns and harmonising the timelines for filing among insurance companies. 

The insurance regulator has taken up a comprehensive review of the regulatory framework for the insurance sector. This will facilitate ease of doing business and reduce compliance burden.

According to the regulator, as part of moving towards principle-based regulations, 37 were consolidated into seven and two new regulations were notified, which were effective from April 1, 2024.

The operational guidelines under these regulations are issued as master circulars.

The regulator said that these regulations and the corresponding master circulars require insurers and reinsurers, including Foreign Reinsurance Branches, to submit certain returns on a periodic basis, wherein reference is made to the master circular on submission of returns.

This master circular replaces circulars issued earlier on the submission of regulatory returns. It provides guidance or instructions on filing of returns.

The master circular is divided into three parts. The first deals with returns specified in the regulations and corresponding master circulars. These returns will check fulfillment of the objectives of the regulations and monitoring of the performance of insurers.

The second part pertains to the business statistics that are collected either through a business analytics project or email.

This is to understand the growth and spread of the business in various geographies, distribution channels, demography and product segments as well as persistency and renewability.

It provides greater insights into the company’s business strategy.

The final part of the circular repeals the various circulars, which are no longer applicable, subsequent to the notification of this circular.