The regulator has directed all insurers to pursue a zero-tolerance policy towards fraud and put in place an appropriate fraud risk management framework that suits their business profile so that they can deter, prevent, detect, report and remediate insurance fraud | Photo credit: iStockphoto
The Insurance Regulatory and Development Authority of India (IRDAI) has asked insurers to implement a board-approved anti-fraud policy.
In the Insurance Fraud Monitoring Framework Guidelines 2025, the regulator on Friday directed all insurers to pursue a zero-tolerance policy towards fraud and put in place an appropriate fraud risk management framework that is sensitive to their business profile so that they can deter, prevent, detect, report and remediate insurance fraud.
The anti-fraud policy approved by the Council must be relevant to the insurer’s entire business operations and activities. The insurer must review such policies regularly, at least annually, and identify red flags, if applicable, and propose adequate procedures to, among other things, deter, prevent, detect, report and remediate fraud in each category of fraud in various activities.
To prevent Cyber or New Age fraud, insurers are required to establish and implement a robust cybersecurity framework to protect against evolving cyber fraud or threats and to continuously monitor and strengthen fraud risk management systems and processes, such as incident databases, customer authentication and access control, according to the new guidelines.
Risk Management Committee
The insurers must now form the Risk Management Committee (RMC), which will be responsible for the effective implementation and oversight of the fraud risk management framework.
“The fraud risk management framework should be specific to the insurer’s business, taking into account the nature of the business, size, risk profile, overall business strategy, products, distribution channels, technology infrastructure and any other applicable parameter, including various activities carried out by the insurer,” the IRDAI said.
Published on October 10, 2025
#IRDAI #directs #insurers #implement #boardapproved #antifraud #policy