The Insurance Regulatory and Development Authority of India (IRDAI), on May 25, 2026, issued revised performance parameters applicable to Key Managerial Persons (KMPs) of insurance companies with the objective of improving customer trust, transparency, accountability, and governance standards across the insurance sector. The revised framework expands beyond traditional operational and financial metrics and places greater emphasis on measurable customer outcomes, grievance redressal, claims responsiveness, fair practices, and sustainable value creation. The changes also mandate timely and comparable disclosures by insurers for the current and preceding three years.
The revised framework introduces parameters relating to financial soundness, product performance, claim settlement efficiency, grievance resolution timelines, and removal of “dark patterns” from insurer and distributor websites. Insurers will now be required to provide clearer disclosures regarding product features, exclusions, FAQs, premium rate increases, settlement patterns, and complaint handling in an “easy to access” and “easy to understand” manner on their websites. The regulator has also emphasized enhanced Board oversight and governance practices to reduce information asymmetry and empower policyholders to make informed decisions.
IRDAI further stated that broader consultations and deeper analysis would be undertaken for developing an insurance sector-wide framework relating to KMP remuneration and governance benchmarking with other financial sector entities. The Authority also indicated that future amendments may address reduction of management expenses, promotion of rural and social sector obligations, and enhancement of coverage under government-backed insurance schemes such as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY).
