Insurance Regulator Update

The Insurance Regulatory and Development Authority of India (IRDAI) has levied a penalty of Rs. 3.39 crore on Star Health and Allied Insurance Company for violations related to information and cyber security protocols.

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IRDAI imposes Rs. 3.39 crore penalty on Star Health for cyber security lapses

Along with the monetary penalty, the insurer has also received a formal warning from the regulator.

This action comes amid increasing concerns about regulatory noncompliance in the insurance sector, particularly in areas such as mis-selling and data protection. To ensure stronger enforcement, IRDAI has recently established specialised enforcement panels comprising whole-time members to adjudicate on violations of the Insurance Act and related regulations.

These panels aim to streamline accountability and ensure timely action on infractions by insurers and intermediaries. The regulatory crackdown is part of a broader move to enhance consumer trust, data integrity, and transparency across the insurance ecosystem. With cyber threats becoming more complex, IRDAI's stringent stance signals a greater emphasis on insurer accountability in safeguarding policyholder data and maintaining robust cyber resilience.

IRDAI may curb Kiwi Insurance's retail health plans over promoter overlap

The Insurance Regulatory and Development Authority of India (IRDAI) is likely to restrict Kiwi General Insurance from launching retail health insurance products due to concerns of promoter overlap. WestBridge Capital, which holds a 60% stake in Kiwi, also owns approximately 40% in Star Health and Allied Insurance-India's largest standalone health insurer.