Regulatory Sandbox a win-win position for regulators and Start-ups:IRDAI
Banarji, urged insuretech firms to use the facility to test new products and services and added that IRDAI will start receiving applications under regulatory sandbox from 15 September to 14 October 2019
Launching the Regulatory Sandbox, Sujay Banarji, member, distribution, Insurance Regulatory & Development Authority of India (IRDAI), said “Regulatory Sandbox will foster collaboration and further the interests of all stakeholders -regulator, insurance companies, start-ups and end consumers.
Banarji, urged insuretech firms to use the facility to test new products and services and added that IRDAI will start receiving applications under regulatory sandbox from 15 September to 14 October 2019.
On Friday, Insurance Regulatory and Development Authority of India (IRDAI) launched the Regulatory Sandbox during the opening session of the ‘Curtain Raiser and Workshop on Regulatory Sandbox’ organised by IRDAI in partnership with Confederation of Indian Industry (CII).
Randip Singh Jagpal, chief general manager, IRDAI, speaking about the initiative by IRDAI explained the complete sandbox model and the operational guidelines for the benefit of the various stakeholders present at the event, including insurance players, intermediaries and insurtechs.
Participating in the discussion Hitesh Kotak, CEO, Munich Re, India said there is a need of initial filtering of insurtech proposals to make the whole new system of “Regulatory Sandbox’ efficient and productive
``We have got a lot of enquiries from overseas markets about the new opportunies facilitated by the new regulations in India. Technology is going to be the backbone of the insurance industry and both products and delivery have to simplified under the new regulations,’’ said Kotak.
Joydeep Roy,partner & global leader insurance digital assets, expected that new innovative, affordable products should be possible with the participation of Insurtechs in the Indian insurance industry.
``Though, Initially the innovative can be tested with limited number of customers but has to reach out the larger customers afterwards,’’ he said.
The Insurance Regulatory Sandbox will provide an environment to innovative technology-led entities for limited-scale testing of a new product or service that may or may not involve some relaxation in a regulatory requirement before a wider-scale launch.
Speaking at the IRDAI-CII event, R M Vishakha, Co-chairperson, CII National Committee on Insurance and Pensions and MD & CEO, IndiaFirst Life Insurance Co. acknowledged the pro-active role played by IRDAI, and the efforts it has made to connect with the industry and creating an environment to enable opportunities which have got created due to new avenues – technology / ever changing distribution landscape / economical shift from physical to financial assets.
Coinciding with the launch of Regulatory Sandbox, a workshop was organised to create awareness about the sandbox and detailed the benefits which will accrue to insuretech firms and other insurance registered entities.
During the workshop, the panelists focussed their discussion on the state of readiness of insurance industry to experiment and innovate and highlighted the various steps IRDAI can undertake to engage with insurance sector and its stakeholders.