Irdai has invited applications for fostering the growth of insurance sector through innovative ideas under its ‘regulatory sandbox approach’, wherein products and services are tested live in a controlled regulatory environment.
The ‘regulatory sandbox approach’ can be used to carve out a safe and conducive environment to experiment with innovative approaches (including fintech solutions), and where the consequences of failure, if any, can be contained, Irdai said.
The Insurance Regulatory and Development Authority of India (Irdai) said it has created a regulatory sandbox with the objective of using new and innovative ideas with a view to accelerate the growth of the sector.
“The Authority hereby invites applications for the 2nd cohort of the Regulatory Sandbox. The window for filing of applications shall open on September 15, 2020 and close on October 14, 2020,” Irdai said in a statement.
A similar invitation last year had evoked responses from a large number of companies, including insurers.
Based on recommendations of an Evaluation Committee, Irdai had given its approval for proposals related to health, motor, non-life, life and intermediaries in three tranches.
The products which were given approvals included need-based health insurance, wearable fitness tracker, insurance gift card, digital wallet program, loss limit insurance, and dynamic term cover.
While inviting applications for the second cohort, Irdai said the objectives of IRDAI (Regulatory Sandbox) Regulations is to strike a balance between orderly development of the insurance sector on one hand and protection of interests of policyholders on the other, while at the same time facilitating innovation.
Another major objective is to facilitate the creation of a regulatory sandbox environment and, if deemed fit, to relax such provisions of any existing regulations as needed.
Irdai said the applicants should clearly bring out the innovation and protection of policyholders’ interest in their proposal, and furnish the implementation approach and methodology.