The Insurance Regulatory and Development Authority of India (IRDAI) has set in motion the process of inviting applications for the second cohort under its regulatory sandbox approach.
An initiative to foster innovative ideas in the insurance space while providing flexibility in dealing with regulatory requirements and at the same time focussing on policyholder protection, the regulatory sandbox approach was initiated by IRDAI last year.
Stating that the approach is used to carve out a safe and conducive environment to experiment with innovative approaches, including fin-tech solutions, where the consequences of failure, if any, can be contained, IRDAI said the window for filing of applications will open on September 15 and close on October 14.
The regulator said the applicants are advised not to file products existing in the market; clearly bring out the innovation and protection of policyholder’s interest; and furnish the implementation approach and methodology. They also need to identify success metrics and methodology to measure the success parameters in an independent, demonstrable and verifiable manner.
Earlier this year, IRDAI had approved 33 product proposals of insurers under the regulatory sandbox approach. These include those on health profile based pricing, use of wearable devices to ‘pay as you drive’ and usage-based motor insurance as well as an AI driven automotive claims and collision estimation system.