Irdai to create regulatory sandbox

The Insurance Regulatory and Development Authority of India (Irdai) recently issued draft regulations for the creation of a regulatory sandbox in a bid to promulgate a conducive environment for insurtech and fintech companies to carry innovation in the insurance space.

The draft has been placed for public and stakeholder feedback. “A regulatory sandbox approach can be used to carve out a safe and conducive space to experiment with fintech solutions and where the consequences of failure can be contained. The objective of the regulatory sandbox is to facilitate innovations in the insurance sector, make the insurance products more affordable and relevant for the insured and to give a fillip to insurance penetration,” stated a public notice.

Applicants can apply in any one of more among five categories: insurance solicitation or distribution, insurance products, underwriting, policy and claims servicing and any other.