The Insurance Regulatory and Development Authority of India (IRDAI) has been undertaking a comprehensive review of its regulatory framework to ensure agility, progressiveness, and a forward-looking approach. By March 2024, IRDAI issued nine principle-based regulations aimed at fostering growth and innovation in the insurance sector. Continuing this mission, five new regulations or amendments have been notified, each addressing critical aspects of the insurance ecosystem.
- Regulations on Regulatory Sandbox
To nurture innovation and adaptability in the insurance sector, the Regulatory Sandbox framework has been enhanced significantly. The updated regulations are now principle-based, with operational details to be issued via a master circular, providing greater clarity and flexibility.
The expanded scope encourages proposals that foster innovation, improve efficiency, and enhance ease of doing business. A significant addition is the provision for Inter-Regulatory Sandbox proposals, which allows for cross-sectoral innovation involving multiple financial regulators. This initiative will enable the industry to develop cutting-edge solutions, foster competition, and address evolving customer needs effectively.
- Regulations on Maintenance and Sharing of Information
The IRDAI (Maintenance of Information by the Regulated Entities and Sharing of Information by the Authority) Regulations, 2025 consolidate and update earlier regulations to streamline record-keeping and data-sharing practices. This regulation combines three prior regulations into a unified framework:
- Sharing of Confidential Information (2012)
- Maintenance of Insurance Records (2015)
- Minimum Information for Investigation and Inspection (2020)
The regulation mandates the use of electronic records with stringent security and privacy measures. It requires regulated entities to implement a robust data governance framework supported by Board-approved policies. Furthermore, all data must reside in data centers located and maintained in India, ensuring data sovereignty and enhancing cybersecurity.
The framework also establishes clear guidelines for sharing confidential information, striking a balance between transparency and the protection of sensitive data.
- Amendments to Meetings Regulations
To improve governance, operational flexibility, and efficiency in decision-making processes, amendments to three regulations concerning meetings have been introduced:
- IRDAI (Meetings) (Amendment) Regulations, 2025
- IRDAI (Insurance Advisory Committee) (Amendment) Regulations, 2025
- IRDAI (Re-Insurance Advisory Committee) (Amendment) Regulations, 2025
These amendments align with IRDAI’s broader goals of transitioning toward a modern, principle-based regulatory framework. They aim to streamline the conduct of meetings, enhance participation, and promote effective decision-making processes across advisory committees.
Driving Sustainable Growth and Policyholder Protection
These updates reflect IRDAI’s commitment to creating a dynamic regulatory environment that prioritizes innovation, efficiency, and policyholder protection. By focusing on principle-based regulations, the authority empowers the insurance sector to operate with greater autonomy while maintaining accountability and transparency.
Enhanced data governance and the focus on digital record-keeping ensure robust operational standards, while the Regulatory Sandbox fosters experimentation and inter-sectoral collaboration. The amendments to meeting regulations further underscore IRDAI’s intent to improve governance and operational agility.
Through these initiatives, IRDAI is not only addressing current challenges but also laying the foundation for a resilient and progressive insurance ecosystem in India. These measures are expected to drive sustainable growth, promote customer-centric innovation, and enhance the trust of policyholders in the insurance sector.
