IRDAI Unlocks New Investment Avenue for Insurers

The Insurance Regulatory and Development Authority of India (IRDAI) has opened a new investment channel for insurers by allowing them to invest in Maharajah INR bonds. These bonds are issued by the New Development Bank (NDB), which plans to raise ₹25,000 crore over a five-year period. The NDB intends to use the proceeds for general corporate purposes. Specifically, these funds will support sustainable development, sustainable infrastructure, green, and social projects within India.

The IRDAI has designated these bonds as part of approved investments for insurers, provided they meet the necessary rating criteria. The regulator has introduced distinct category codes for these investments: 'EORB' for onshore rupee bonds and 'IORB' for infrastructure-approved NDB bonds. If bond proceeds are directed towards infrastructure, these investments will qualify as such. Recent amendments in July 2026 have also eased certain investment norms for life insurers, who are mandated to invest a significant portion in government securities and at least 15% in infrastructure and social sectors.