Industry participants say the proposed framework, set to launch by 2028, could reduce costs, improve operational efficiency and support broader adoption of captives and insurance-linked securities.
A shift to a broad-based property charge would lower costs for most households and businesses while expanding insurance uptake, the industry body said.
Insurers face broader expectations on stress testing, collateral quality, recapture planning and reinsurer due diligence under the revised guidelines, which apply from July 1.
Home minister Amit Shah said the venture would build on IFFCO's existing joint venture with Tokio Marine to widen the cooperative sector's role in insurance.
The agreement addresses potential conflict-of-interest concerns while Prudential pursues its acquisition of a controlling stake in Bharti Life Insurance.
