It proposes to issue the IRDAI Procedure for Making Regulations and Subsidiary Instructions) Regulations, 2026 in light of the framework introduced under the Sabka Bima Sabki Raksha
The Insurance Regulatory and Development Authority of India (IRDAI) has constituted a working group on AI for guiding regulated entities in the insurance sector on adoption, governance and oversight of AI technologies. The working group, chaired by Prof Sandeep K Shukla, Director, IIIT Hyderabad, will provide direction on governance frameworks, best practices and safeguards to ensure that innovation in the insurance sector is pursued in a manner that is not only fair, transparent and resilient but also ensure that policyholders’ data is protected at all times. In the recent past, rapid advancements in emerging technologies such as AI have begun to reshape the cybersecurity threat landscape as these technologies find increasing adoption within the insurance sector and they may pose challenges for regulated entities, IRDAI said.”In order to ensure that the industry is adequately prepared to harness these technologies responsibly and safeguard the interests of policyholders, it is essential to study their impact on the insurance ecosystem, as they also introduce new dimensions of ethical, operational and cybersecurity risks,’’ the circular said. It also proposes to issue the IRDAI (Procedure for Making Regulations and Subsidiary Instructions) Regulations, 2026 in light of the framework introduced under the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025. Proposed RegulationsIn an exposure draft, the insurance regulator has proposed some changes in the principles of regulation making. The proposed regulations prescribe broad principles that may be considered while framing regulations, including a public consultation framework, a framework for economic analysis, and empower the authority to undertake economic analysis of proposed regulations, including assessment of costs and benefits proportionate with the authority’s statutory objectives. The proposed regulations provide for consultation with the Insurance Advisory Committee in accordance with the provisions of the IRDA Act, 1999 and also empower the authority to establish additional consultation mechanisms that incorporate domain expertise in examining regulatory proposals, according to the circular.Published on June 18, 2026
