Indian insurance landscape is evolving rapidly. To make the market more competitive and accessible, the Insurance Regulatory and Development Authority of India (IRDAI) recently updated the rules for foreign insurance companies looking to set up a “Liaison Office” in India.
IRDAI issued amended guidelines on February 11, 2026, replacing the older 2022 framework. These rules define how an overseas insurer can establish a presence in India to act as a bridge between their global headquarters and the Indian market.
These offices will act as communication hubs, not sales centers. They help global companies study our market before deciding to launch full-scale operations.
What is a Liaison Office (LO)?
In simple terms, a Liaison Office is a “representative” office.
- It CAN act as a channel of communication and conduct market research.
- It CANNOT sell insurance policies, collect premiums, or engage in any commercial trading.
- It must be 100% funded by the overseas parent company through foreign remittances.
IRDAI has set high standards to ensure only stable and “serious” global players enter the Indian space.
To open an office in India, an overseas insurer must prove it is financially healthy:
- They must have a profit-making track record for the last 3 financial years in their home country.
- They must have a minimum net worth of USD 65 million (approx. ₹540 Crores).
- IRDAI may relax these rules for state-owned foreign enterprises or specialized reinsurers with high credit ratings.
- Initial approval is usually granted for 3 years.
This 2026 update in IRDAI guidelines for Liaison Offices provides much-needed clarity on the “exit” and “entry” norms. By mandating a USD 65 million net worth, IRDAI is ensuring that only “deep-pocketed” and stable global entities interact with our ecosystem. This protects the reputation of the Indian insurance sector while inviting global innovation..
Detailed IRDAI Regulations – Circular No. IRDAI/F&I/GDL/MISC/27/02/2026
