in a nutshell : if your password is compromised, you can change it and recover your security ; if a biometric marker of yours is compromised (say your iris), you cannot change it (at reasonable cost !) ... so how can you recover your security ?
cancellable biometrics aims at finding ways to use biometric markers to build identifiers in such a way that you can change the identifiers if compromised
Cancelable biometrics refers to the intentional and systematically repeatable distortion of biometric features in order to protect sensitive user-specific data. If a cancelable feature is compromised, the distortion characteristics are changed, and the same biometrics is mapped to a new template, which is used subsequently. Cancelable biometrics is one of the major categories for biometric template protection purpose besides biometric cryptosystem.
Cancellable Biometrics is a Biometric template which can be replace whenever is needed. similar to your password which you can change it anytime you want.