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What are the IRDA regulations in 2025?

Submitted by admin on February 14th, 2025

The Insurance Regulatory and Development Authority of India (IRDAI) launched multiple essential regulations during February 2025 to develop innovation alongside data governance and operational excellence in insurance operations. This section provides an overview of the important regulatory changes introduced by the Insurance Regulatory and Development Authority of India in 2025.

IRDAI (Regulatory Sandbox) Regulations, 2025

The IRDAI developed Regulatory Sandbox framework so the insurance industry can better embrace innovation through its framework. A controlled experimental area enables insurers along with intermediaries to develop and test their new products, services and business approaches while protecting policyholder interests throughout the experimentation period. The regulatory framework aims for several main targets as follows:

• These regulations support innovative initiatives that will enhance the Indian insurance sector.
• The regulations enforce the systematic advancement of India’s insurance sector.
• Protecting the interests of policyholders.

The regulatory sandbox environment offers permission to reduce specific regulatory requirements within an experimental period for narrow-scope conditions.

Insurers together with intermediaries and other corporations possessing minimum specified net worth can seek permission to evolve insurance sector innovations from IRDAI. Research permission becomes valid during experimental testing conditional to fulfillment of requirements that contribute to sector development and raise insurance penetration while enhancing operations.

IRDAI (Maintenance of Information by the Regulated Entities and Sharing of Information by the Authority) Regulations, 2025

IRDAI established a single framework through the IRDAI (Maintenance of Information by the Regulated Entities and Sharing of Information by the Authority) Regulations, 2025 to enhance data security and governance for regulated entities. Key mandates include:

• All maintenance processes within regulated entities must happen electronically through systems which maintain strong security standards.
• Physical and digital records must be maintained by all companies under the Data Governance Framework while they implement recorded data maintenance policies approved by the board.
• The regulations stipulate that every entity must store all data within Indian data centers which are both located and operated inside Indian borders.
• The regulations establish guidelines to share confidential information which demands protected exchanges that follow applicable law requirements.
• The regulatory framework requires insurers and intermediaries to keep essential operational data as well as follow security standards while being prepared for Insurance Act, 1938 led investigations and inspections.

Amendments to Meetings Regulations

The Insurance Regulatory and Development Authority of India made adjustments to meeting regulations to improve operational flexibility and governance within the insurance industry. The newly amended meeting procedures focus on creating efficient decision pathways through better advisory committee participation for enhanced overall effectiveness. The specific regulations amended include:

• IRDAI (Meetings) (Amendment) Regulations, 2025
• IRDAI (Insurance Advisory Committee) (Amendment) Regulations, 2025

The IRDAI modified three regulations through the (Re-Insurance Advisory Committee) (Amendment) Regulations, 2025.

IRDAI pursues these changes to develop modern regulatory principles that deliver more efficient and effective oversight of the sector.

IRDAI demonstrates its dedication to developing a dynamic insurance system in India that combines innovation promotion with the protection of policyholder rights through these new regulatory measures.

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