The Insurance Regulatory and Development Authority of India (Irdai) has consolidated investment-related provisions into a single section of the Insurance Act, shifting operational details to regulations. This change simplifies the framework, allowing Irdai greater flexibility to adapt to market developments without frequent legislative amendments. Key changes include clarifications on encumbrances for liquidity management and the removal of a blanket prohibition on investments in private limited companies, subject to regulatory safeguards. The insurance sector's Assets Under Management reached Rs 74.4 lakh crore as of March 31, 2025.