IRDAI: New Sales Rules and Cyber Security Guidelines

IRDAI has directed insurance companies to name the authorised seller on every policy from January 2027 and make salesperson tagging mandatory to curb mis-selling

The new rules aim to bring transparency and accountability in insurance sales and prevent unauthorized selling

This change means that advisors will need to ensure they are properly tagged on every policy they sell and that their sales practices are compliant with the new regulations

Advisors should review their current sales processes and ensure they are aligned with the new rules to avoid any disruptions or penalties

Details on the implementation of the new rules are sparse, so advisors should await official communication from their insurers for specific guidance on the changes and how to comply

The new cyber security guidelines, known as CyberPeace, will also require insurers to enhance their cyber security measures to protect policyholder data, which may impact how advisors interact with insurer systems and handle customer data