IRDAI has widened the investment avenues available to insurers by allowing investments in private limited companies, easing norms for financing infrastructure projects through special purpose vehicles (SPVs), and permitting repo, reverse repo and government securities lending transactions, according to an Economic Times report on July 31.
Key changes: insurers can invest up to 20% of the debt issued by an operational infrastructure SPV with stable cash flows, subject to a minimum AA rating; life insurers can invest up to 3% of funds and general insurers up to 5% of investment assets in private limited companies, AIFs and venture funds combined, provided the investee has a minimum net worth of Rs 25 crore and profits in two of the last three years; promoter group exposure is capped at 5%; and repo and government securities lending is allowed up to 25% of eligible government securities or Rs 10,000 crore, whichever is lower.
Investments in private companies belonging to an insurer's promoter group remain prohibited, and reverse repo in corporate debt is capped at 10% of funds or investment assets.
Source: Economic Times (July 31, 2026)