The Insurance Regulatory and Development Authority of India (Irdai) is looking to extend the testing of products under the regulatory sandbox mechanism by three years. irdai The Chairman said that all these initiatives will help further the goal of insurance penetration and reach out to more and more people.

A sandbox is an environment used in the financial services sector to provide a testing ground for new business models, processes, and applications that may not necessarily be fully covered or not fully compliant with existing regulations. Can do.

“The insurtech ecosystem is poised to evolve. At Irdai we have already developed something called regulatory sandbox mechanism where a proof of concept is being allowed to actually be tested on the ground. We are informed that There are some shortcomings in the regulatory sandbox.” debashish pandaChairman, IRDA said during a negotiating session.

As of now, applicants can apply through a group under the regulatory sandbox mechanism.

“Here we now feel that this should be an ongoing process, the period for which they are allowed to test such products in the market is limited to only six months. We now propose to extend that period to three years. especially for life insurance products,” Panda said.

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“Work is in progress and Insurtech players are eager to grow, they are all excited, so technology is coming too. Here we have to build our capacity to regulate them with respect to the market product,” he said.

He The. Made this remark during a talk series on ‘Know Your Regulator’ organized by State Capacity Initiative Feather Policy Research Center (CPR), Indian regulatory forum (FOIR) and Indian Institute of Corporate Affairs ,IICA,

Panda said IRDA is looking at the possibility of allowing smaller companies in the insurance sector as well.

“Look at the banking system, we have different players, banking has entered this country today with over 130 crore accounts. So we are trying to think of micro insurance players as well.

“We are looking at allowing niche players as well to enter this segment. We are also looking at regional entities to enter this segment, albeit with an amendment to the (Insurance) Act to allow less capital in it. There will be some element involved so that these players can come,” he said.

Panda further added that these niche players should have the technology backbone and have Insurtech to help them cater to the areas which are still unserved in the country.

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