Parliamentary panel urges faster risk-based capital norms and GST relief for insurance

A parliamentary committee has asked IRDAI to accelerate risk-based capital rules and called for rationalising the 18% GST on insurance products, framing lower costs and stronger insurer balance sheets as critical to expanding coverage under the Insurance for All by 2047 goal.

— Source publishedFri, 7 Aug, 2026, 09:50 IST·First seen Fri, 7 Aug, 2026, 09:55 IST·Source The Hindu BusinessLine

What happened

A parliamentary panel urged IRDAI to fast-track risk-based capital norms and called for GST rationalisation on insurance to improve affordability and

Key facts

  • 18% GST on insurance products
  • Insurance for All by 2047
  • Three public sector general insurers

Why this matters

A more affordable, better-capitalised insurance market could expand partnership opportunities in embedded insurance and distribution, warranting early engagement with insurers and insurtechs.

What to watch

  • GST Council agenda, fitment-committee recommendations or Finance Ministry statements on insurance GST.
  • IRDAI publication of final risk-based capital regulations, implementation dates and transition relief.
  • Budget documents or official actions tied to the Insurance for All by 2047 roadmap.
  • Insurer premium repricing, new low-ticket products and expanded retailer/fintech distribution tie-ups.
  • Movement in health and term-insurance policy growth, claims ratios and insurer solvency/capital-raising activity.
  • Build or deepen embedded-insurance partnerships for electronics, travel, mobility, health and SME customer segments.
  • Prepare checkout, CRM and consent workflows for lower-premium or GST-exempt insurance SKUs if tax changes are announced.
  • Review store, warehouse, cyber, employee-health and liability insurance renewals for potential pricing and coverage improvements as insurers optimise capital.
  • Target insurance-assisted financing bundles for durable goods, with clear disclosures to avoid mis-selling and regulatory risk.
  • Track insurer appetite for commission structures and co-branded distribution under evolving capital rules.

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