The Insurance Regulatory and Development Authority of India (IRDAI) has formed a working group to shape how artificial intelligence is adopted and governed across the Indian insurance industry. The move, announced through an office order on 17 June 2026, signals the regulator's intent to get ahead of the operational, ethical, and cybersecurity risks AI introduces while ensuring policyholder protections remain strong.
The order, issued by Executive Director G R Suryakumar, said: "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."
The working group will recommend governance frameworks that keep innovation fair, transparent, and resilient. Insurers increasingly explore AI for Insurance applications, from claims processing to fraud prevention, and the regulator wants to make certain that data protection and explainability don't get sidelined.
Mandate and scope of the working group
The group has been given ten specific tasks. These cover studying the overall impact of AI on insurers and policyholders, assessing the current maturity of AI governance in the sector, and reviewing how global regulators are handling AI risks. Crucially, the group will propose an AI governance framework for ethical and transparent use in claims, fraud detection, and other areas.
- Assess adoption, maturity, and existing AI governance across the sector.
- Review global regulatory and supervisory approaches to AI in insurance.
- Suggest an AI governance framework for ethical, transparent, and explainable AI tools.
- Examine the need for sector-wide stress tests focused on AI-related risks.
- Propose an AI audit framework covering pre- and post-deployment requirements.
- Identify skill gaps and capacity-building needs for stakeholders.
The regulator also expects the group to evaluate frontier AI tools and recommend security controls to counter automated attacks.
Members bring diverse expertise
The working group is chaired by Prof Sandeep K Shukla, Director of IIIT Hyderabad. It brings together cybersecurity leaders, regulatory technology specialists, and chief information security officers from insurers. A scientist from CERT-In and a former CEO of ReBIT also sit on the panel, with an IRDAI general manager serving as member convener.
- Prof Sandeep K Shukla, Director, IIIT Hyderabad - Chairperson
- Nandkumar Saravade, EX-CEO, ReBIT - Member
- Ashutosh Bahuguna, Scientist, CERT-In - Member
- Manoj Nayak, CISO, SBI Life Insurer - Member
- Shivanath Somanathan, CISO, Star Health Insurer - Member
- Steve Dsouza, CRO, ICICI Lombard Insurer - Member
- Deepak Gaikwad, GM & CISO, IRDAI - Member Convener
Timeline and next steps
The working group must submit its recommendations to the IRDAI Member (F&I) within three months from the date of constitution. That puts the deadline around mid-September 2026. Once the report is in, the regulator is expected to issue guidelines based on these recommendations, which will directly shape AI compliance requirements for insurance companies.
Why this matters for insurance professionals
This working group's output will influence the guardrails insurers must operate within when using AI. Insurance professionals-especially those in underwriting, claims, risk, and compliance-should prepare for new audit frameworks, possible stress tests, and clear expectations around explainability and data protection. The three-month timeline means the industry could see draft regulations or discussion papers before the end of 2026. Getting familiar with global AI governance practices now will help teams adapt faster when India's own standards land.
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