The Insurance Regulatory and Development Authority of India (IRDAI) has established a working group on artificial intelligence (AI) to ensure the insurance industry is prepared to responsibly harness these technologies while safeguarding policyholder interests. According to reports from The Hindu BusinessLine, the group will provide comprehensive guidance on AI adoption, governance, and oversight across the insurance sector. The working group, chaired by Prof Sandeep K Shukla, Director of 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 ensures that policyholders' data is protected at all times. As per IRDAI's Office Order dated June 17, 2026, the group has been constituted to guide regulated entities in the insurance sector on the responsible adoption, governance, and oversight of AI technologies.
The working group is chaired by Prof Sandeep K Shukla, Director of IIIT Hyderabad, with key members including Nandakumar Saravade, former CEO of ReBIT; Ashutosh Bahuguna, scientist at CERT-In; Manoj Nayak, CISO of SBI Life Insurance; Shivanath Somanathan, CISO of Star Health & Allied Insurance; and Steve D'Souza, CRO of ICICI Lombard General Insurance. As reported by The Hindu BusinessLine, Deepak Gaikwad, general manager and CISO of IRDAI, will serve as the member-convener of the group. The group's formation comes as 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. According to IRDAI's Office Order, the working group may engage subject experts as required and has been directed to submit its recommendations to the member (Finance and Investment) within three months from its constitution date.
The seven-member working group will conduct a comprehensive study of AI's impact, including potential challenges and risks, and assess implications for insurers, policyholders and the insurance ecosystem. According to The Hindu BusinessLine, it will assess the adoption, usage, maturity, and deployment of AI, as well as existing AI governance levels in the sector. The group will also examine the impact of frontier AI tools and suggest an AI audit framework for addressing pre-deployment and post-deployment requirements. As per IRDAI's Office Order, the working group will study AI adoption, governance maturity, inventory of AI systems, global regulatory approaches, ethical and explainable AI frameworks, AI-driven cyber security risks, stress testing for AI-related risks, AI audit frameworks, and capacity-building requirements. The framework addresses the need to study AI's impact on the insurance ecosystem, as these technologies introduce new dimensions of ethical, operational and cybersecurity risks that require careful regulation and oversight.
The working group will conduct a structural assessment of AI systems used by insurance entities and review global regulatory and supervisory approaches to AI with focus on the insurance sector. As reported by The Hindu BusinessLine, it will identify skill gaps and capacity-building needs for various stakeholders, examine sector-wide stress testing requirements, and assess any other AI-related matters in the insurance sector. According to IRDAI's Office Order, the group will suggest AI governance frameworks for ethical, transparent and explainable adoption of AI tools or models in the insurance sector, including for claims and fraud prevention. The working group will also assess the impact of frontier AI tools on the insurance sector and suggest a framework for implementing reasonable security controls to mitigate risks from AI driven automated attacks. The group will submit its recommendations to the member (Finance and Investment) within three months from its constitution date, with the working group meeting as frequently as necessary to carry out its functions effectively.
