Photo of Ayushi Agrawal

Ayushi is a Senior Associate with Cyril Amarchand Mangaldas and is a part of the General Corporate practice in the Mumbai region. She joined the firm in the year 2020 after graduating from National Law University, Delhi.  She is involved in advising private and public companies, key Indian financial institutions (including banks) on mergers & acquisitions, business alliance, restructuring, and foreign investments in India, with a special focus on the insurance sector. She can be reached at ayushi.agrawal@cyrilshroff.com

Indranath Bishnu and Ayushi Agrawal

Insurance Brokers Association of India projects insurance broking sector to capture a 45 per cent market share by 2030 following increased insurance penetration and the demand for insurance productsOver the past couple of years, the Indian insurance industry has seen a series of significant transformations and new developments. Modified regulations, liberalisation of commission regimes, and proposals for amendment of regulatory architecture have opened new avenues of growth for the insurance broking industry. Continue Reading Mergers and Acquisitions in the Indian Insurance Broking Space

Acquisition of NBFC-MFIs by Banks: Key Considerations

Background

Banks in India are often on the look-out for potential acquisition opportunities to spur inorganic growth. While their strategic interests will determine their targets, in recent times, banks have been evaluating acquisition of non-banking financial companies (“NBFCs”) and more specifically micro-finance institutions (“MFIs”), which primarily cater to the rural and

Remuneration to Directors and KMPs of Insurers – Enhanced Guidelines with Extended Coverage

Introduction

The remuneration payable to Chief Executive Officers (“CEOs”), Whole-Time Directors (“WTDs”) and Managing Directors (“MDs”) of insurance companies is governed under Section 34A of the Insurance Act, 1938. This provision requires insurers to procure prior approval from the Insurance Regulatory and Development Authority of India (“IRDAI”) in relation to such remuneration. The IRDAI (Remuneration of Non-Executive Directors of Private Sector Insurers) Guidelines, 2016 and IRDAI (Remuneration of Chief Executive Officer/Whole Time-Director and Managing Director of the Insurers) Guidelines, 2016 dated August 5, 2016 (collectively, the “Erstwhile Guidelines”) have historically governed this matter. In supersession of the Erstwhile Guidelines, the IRDAI has recently notified the Guidelines on Remuneration of Directors and Key Managerial Persons of Insurers, on June 30, 2023, which includes the IRDAI (Remuneration of Non-Executive Directors of Insurers) Guidelines, 2023 and IRDAI (Remuneration of Key Managerial Persons of Insurers) Guidelines, 2023 (collectively, the “Revised Guidelines”). The Revised Guidelines are effective from the FY 2023-24 i.e. from April 1, 2023 and the insurers are required to complete the process of framing/reviewing the remuneration policy within three months of the issuance of the Revised Guidelines.Continue Reading Remuneration to Directors and KMPs of Insurers – Enhanced Guidelines with Extended Coverage

Introduction

Vide an office memorandum dated November 29, 2022, the Department of Financial Services (Ministry of Finance), Government of India (“DFS”) has proposed extensive amendments to the Insurance Act, 1938 (“Act”) by way of the Insurance Laws (Amendment) Bill, 2022 (the “Amendment Bill”) in order to address the persistent demands of the insurance industry and to change some of the basic principles under the Act. The discussion on the overall nature of changes brought about by the Amendment Bill can be found in our blog post dated December 13, 2022.Continue Reading Looking Beyond Core Insurance Business: Insurers Allowed to Offer Value Added Services and Engage in Distribution of Other Financial Products

Appointment of Common Directors between Intermediaries and Insurers IRDAI Resolves the Conundrum!

Common Directors under Section 48A of the Insurance Act, 1938

The appointment of the same individual on the Board of Directors (“Board”) of both an insurer and an insurance intermediary (brokers, corporate agents and web aggregators) (“Common Director”) is currently prohibited under Section 48A[1] of the Insurance Act, 1938 (“Act”). However, the Insurance Regulatory and Development Authority of India (“IRDAI”) is empowered to permit an intermediary to be a director on the Board of an insurance company subject to the conditions and restrictions as may be imposed by the IRDAI. Therefore, if an insurer were to appoint Common Directors on its Board, a prior IRDAI approval is a critical requirement.Continue Reading Appointment of Common Directors between Intermediaries and Insurers: IRDAI Resolves the Conundrum!

FDI Liberalisation in Insurance Companies and Harmonisation of Insurance Regulations What Has Changed in the Year Gone By

The Union Budget 2021-22 announced the proposal to liberalise Foreign Direct Investment (“FDI”) in Indian insurance companies from the existing 49% to 74% with effect from August 2021. The aforesaid proposal was subsequently formalised by way of introduction of the Insurance (Amendment) Act, 2021 (“Amendment Act”), to amend the Insurance Act, 1938. Please click here to refer to our earlier blog for more details in this regard.Continue Reading FDI Liberalisation in Insurance Companies and Harmonisation of Insurance Regulations: What Has Changed in the Year Gone by?