Irdai asks insurers, distributors to form fraud risk management framework

Irdai has asked insurers and reinsurers to implement anti-fraud frameworks and cybersecurity systems by April 2026, including data sharing and blacklisting via IIB

The Insurance Regulatory & Development Authority of India (Irdai) has asked insurers, reinsurers and distributing channels to form a framework to address and manage risks emanating from fraud. The guidelines will be effective from April 1, 2026.

 

Irdai has asked insurance companies to target a zero tolerance for fraud and put in place an appropriate risk management framework. The companies are also expected to have a board approved anti-fraud policy, which includes red flag indicators, adequate procedures to deter, prevent, detect, report and remedy fraud, among others.

 

They also have to set up a fraud monitoring committee (FMC), which is