India's insurance regulator has formed a dedicated working group to guide the sector's adoption of artificial intelligence, aiming to mitigate emerging risks while protecting policyholder interests. The Insurance Regulatory and Development Authority of India (IRDAI) announced the group's constitution on 17 June 2026, tasking it with delivering recommendations within three months.
"In order to ensure that the industry is adequately prepared to harness these technologies responsibly and safeguarding the interests of policyholders, it is essential to study their impact on insurance ecosystem as they also introduce new dimensions of ethical, operational, and cyber security risks," said IRDAI Executive Director G R Suryakumar in the office order.
The move comes as insurers increasingly deploy AI for underwriting, claims processing, and fraud detection, creating an urgent need for clear governance guardrails. The working group will examine how AI affects the broader insurance ecosystem and propose frameworks that keep innovation fair, transparent, and resilient while protecting policyholder data.
Composition and mandate
The working group is chaired by Prof Sandeep K Shukla, Director of IIIT Hyderabad. Members include Nandkumar Saravade, former CEO of ReBIT; Ashutosh Bahuguna, Scientist at CERT-In; Manoj Nayak, CISO of SBI Life Insurer; Shivanath Somanathan, CISO of Star Health Insurer; Steve Dsouza, CRO of ICICI Lombard Insurer; and Deepak Gaikwad, GM & CISO at IRDAI, who serves as member convener.
The group's terms of reference cover ten areas, focusing on practical assessment and actionable guidance for regulated entities. Key tasks include:
- Studying AI's impact on insurers, policyholders, and the insurance ecosystem, including emerging challenges and risks.
- Assessing the current level of AI adoption, maturity, and governance practices across the industry.
- Reviewing global regulatory approaches to AI in insurance to inform local standards.
- Suggesting an AI governance framework for ethical, transparent, and explainable adoption in claims, fraud prevention, and other domains.
- Assessing frontier AI risks and proposing security controls to counter AI-driven automated attacks.
- Examining the need for sector-wide stress tests focused on AI-related risks and resilience.
- Developing an AI audit framework covering both pre-deployment and post-deployment requirements.
- Identifying skill gaps and capacity-building needs for stakeholders.
Why this matters for insurance professionals
The working group's output will likely shape compliance obligations, audit requirements, and skill development priorities for the Indian insurance industry. Professionals in claims, underwriting, IT, and risk management should expect new governance standards that influence how AI models are selected, validated, and monitored. The emphasis on stress tests and audit frameworks signals a move toward more rigorous oversight, making it sensible to build internal capabilities around AI risk and regulatory compliance now. Professionals can deepen their understanding of AI for Insurance and responsible adoption to prepare for upcoming requirements.
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