The Insurance Regulatory and Development Authority of India has revised the performance parameters for key management persons at insurance companies through an amendment to the Master Circular on Corporate Governance of insurers. The updated framework moves beyond traditional operational and financial metrics to place greater weight on customer outcomes and governance, with boards expected to drive improvements in customer satisfaction and experience, timely claims and grievance resolution, fewer repeat complaints and service failures, and fair and transparent customer-facing processes. The revised parameters cover financial soundness, product performance, claim responsiveness, timely grievance redressal, and the removal of dark patterns from the websites of insurers and their distributors. Product disclosures will cover features, inclusions and exclusions, frequently asked questions, premium rate increases, sale and exit performance, and returns. Claims disclosures will address timeliness, the nature of settlements, and settlement value ratios, while grievance disclosures must distinguish service requests from grievances and show the time taken to resolve them. IRDAI also expects timely, consistent and accurate disclosure of comparable information across insurers for the current year and the preceding three years, with some disclosures required quarterly and others monthly, presented on company websites in an easy-to-access and easy-to-understand format without asking visitors for personal details. IRDAI also identified the need for deeper analysis and wider consultation on a sector-wide framework and on benchmarking KMP remuneration against other financial sector players. Separately, it indicated that proposed revisions to relevant regulations and master circulars will address Expense of Management, rural and social obligations, and coverage under government-promoted schemes such as PMJJBY and PMSBY.

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