Data Localisation In The Indian Insurance Sector

Introduction

Insurance is a data intensive sector. Data localisation in India is sometimes described as though it were governed by a single rule requiring all insurance and related data to remain in India. The legal position is, however, more nuanced. The applicable requirements arise under several statutory and regulatory instruments, apply differently to Insurers, Reinsurers, and insurance intermediaries, and attach to particular records, systems, and regulated functions.

Lately, this distinction has assumed greater significance as insurance businesses increasingly rely on sophisticated and group-wide technology platforms for policy administration, claims management, reinsurance, finance and accounting, investment management, HR, customer journeys, and cybersecurity. A single platform may therefore contain data which is subject to different maintenance, retention, security, backup, and inspection requirements. Accordingly, the location of a particular system or platform does not,