Impact of IRDAI Regulatory Reforms on Insurance Penetration and Growth in India: A Comprehensive Empirical Analysis

Abstract

This study empirically analyzes the impact of the key IRDAI regulatory reforms on insurance penetration and growth in India. Using data from 2012-13 to 2022-23, the research examines the effects of product approval reforms, FDI liberalization, compliance rationalization, digitization initiatives and risk-based supervision on various insurance sector metrics. Employing statistical techniques including panel regression, difference-in-differences, and structural equation modeling, the study finds that IRDAI reforms have significantly boosted new business growth, product innovation, capital inflows, operational efficiency, and the overall insurance penetration and density. The findings provide evidence-based insights for policymakers, and, contribute to the literature on insurance regulation in emerging markets, while highlighting areas for further policy intervention.