Insurance/PE Update

On October 13, 2022, the Insurance Regulatory and Development Authority of India (the “IRDAI”) published an exposure draft of the IRDA (Registration of Indian Insurance Companies) Regulations, 2022 (the “Draft Registration Regulations”), under which it is proposed to permit private equity funds (“PE Funds”) to act as promoters of Indian insurance companies. 

Conditions for Investment

Investments may be made in two distinct capacities: (i) as an investor; and (ii) as a promoter. 

Investment as an investor is subject to a cap of 25% (twenty-five percent) of the paid-up equity share capital of insurer.  This investment is restricted to no more than two (2) life insurers, two (2) general insurers, two (2) health insurers and two (2) reinsurers, if (i) the investment exceeds 10% (ten percent) of the paid-up equity capital of the insurer; and (ii) if the investor has the authority to appoint/nominate a director on the board of the insurer(s).