The regulatory sandbox will not only give insurance companies an opportunity to try out new innovations but will also help regulators keep pace with technology advancements, a senior Irdai official said. Last month, the insurance regulator had issued the guidelines on operational issues related to the regulatory sandbox.
Irdai member (distribution) Sujay Banarji said Friday that the sandbox approach gives insurers the opportunity to try out innovations in a safe and secure environment. He said Irdai does not have all the knowledge of technology within the country or around in the world.
"So for Irdai, the sandbox offers valuable learning experience and aligns them to keep pace with developments with technology advancements and new business models that may not conveniently fit into the existing regulatory framework," Banarji said told a workshop on regulatory sandbox' organised by Irdai in partnership with CII. The sandbox also can help the regulator in developing guidelines for new technologies to promote innovations and experimentation to benefit end customers.
The sandbox can help in developing innovation that can be disruptive and an innovative business model based on an extensive use of technology. "It can help reach new segments, reduce cost, improve customer service and operational efficiencies," he said.
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