IRDAI Sets Up Working Group to Guide Insurers on Responsible AI Use

India's insurance regulator has constituted a working group to shape how insurers adopt artificial intelligence, reflecting the technology's rapid spread across underwriting, pricing, claims and customer service. The group is tasked with guiding insurers on AI adoption, governance and oversight while ensuring that policyholder interests and data protection remain firmly safeguarded. As insurers increasingly use machine-learning models to assess risk, detect fraud, automate claims and personalise products, regulators worldwide are grappling with questions of fairness, transparency, accountability and the risk that opaque algorithms could disadvantage certain customers or entrench bias. The Insurance Regulatory and Development Authority of India's initiative signals an intent to encourage innovation and efficiency without compromising the protections owed to policyholders. Expected areas of focus include how insurers validate and monitor models, maintain human oversight of automated decisions, explain outcomes to customers, and secure the large volumes of personal data that AI systems rely on. The move fits within the regulator's broader modernisation agenda, which includes a digital insurance marketplace and reforms aimed at widening access to cover. Clear guardrails could help insurers deploy AI with confidence while giving consumers assurance that automated systems are being used responsibly and fairly across the sector.