IRDAI reforms focus on modernising insurance oversight

The Regulatory Sandbox framework has also been updated.

The Insurance Regulatory and Development Authority of India (IRDAI) introduced five new regulations and amendments to further strengthen the country’s insurance regulatory framework. 

The Regulatory Sandbox framework has been updated to promote innovation and adaptability. 

The regulations are now principle-based, with operational guidelines to be outlined in a master circular. 

The scope of the sandbox has been expanded to encourage proposals that enhance innovation and operational efficiency, and for the first time, the framework allows Inter-Regulatory Sandbox proposals that span across multiple financial sectors.

The IRDAI has also consolidated three existing regulations into the new IRDAI (Maintenance of Information by the Regulated Entities and Sharing of Information by the Authority) Regulations, 2025. 

This consolidation mandates electronic record-keeping with robust security and privacy measures, requires regulated entities to implement Board-approved data governance frameworks, and ensures that data is stored exclusively in India-based data centres. 

Additionally, clear guidelines for sharing confidential information have been established.

Amendments have been made to meeting-related regulations, including those governing the Insurance Advisory Committee and the Re-Insurance Advisory Committee. 

These changes aim to enhance governance, improve operational flexibility, and align with the broader goal of a modern and efficient regulatory framework.

The revised regulations reflect IRDAI’s commitment to maintaining a dynamic regulatory environment that supports sustainable growth, operational improvements, and robust policyholder protection in the evolving insurance landscape.