Regulation guide

IRDAI Outsourcing

Operationalize the IRDAI Outsourcing requirements—from regulatory obligations and evidence collection to vendor assessments, continuous monitoring, governance, and remediation workflows.

Overview

IRDAI outsourcing requirements govern how insurers outsource activities while remaining accountable to policyholders and the regulator. The catalog category should not label this page as AI governance unless a separate AI source is added; the official topic is outsourcing.

Insurance outsourcing can affect policy servicing, claims, customer data, complaints, distribution, technology, and operational continuity. IRDAI expects insurers to govern outsourced activities, protect policyholders, and maintain supervision.

Rather than prescribing identical controls for every relationship, the regulation emphasizes a risk-based approach, requiring organizations to apply governance, oversight, controls, monitoring, and due diligence according to the criticality and risk of each relationship.

This implementation guide explains what the regulation requires, how those requirements translate into operational controls and evidence, and how Halbarad helps organizations operationalize compliance through assessments, continuous monitoring, governance workflows, and supply chain risk intelligence.

Official Sources

Intent of the Guide

Insurance outsourcing can affect policy servicing, claims, customer data, complaints, distribution, technology, and operational continuity. IRDAI expects insurers to govern outsourced activities, protect policyholders, and maintain supervision.

Operationalization Requirements

  • Identify outsourced activities and whether they are permitted, material, or restricted.
  • Maintain outsourcing policy, approval, due diligence, contracts, and monitoring.
  • Protect customer data and policyholder interests.
  • Track complaints, incidents, issues, remediation, and business continuity.

Evidence Requirements

  • Outsourcing inventory and policy.
  • Due diligence, approval, contract, and monitoring records.
  • Data protection and policyholder protection evidence.
  • Complaints, incidents, remediation, and continuity evidence.

Common Gaps

  • Outsourcing records are not connected to policyholder impact.
  • Complaint evidence sits outside provider oversight.
  • Category labels confuse outsourcing and AI governance.

How Halbarad Helps

Halbarad helps insurers maintain outsourced provider records, evidence, customer-impact issues, monitoring, remediation, and reporting.

Disclaimer

This guide is for general information only and is not legal advice. Review the official regulation, guidance, and supervisory materials, and consult qualified counsel or compliance advisors for your organization's specific obligations.