The course of life is very dynamic and unpredictable. At Times of uncertainty, insurance has been a blessing for a lot of people who suffered losses and was able to mitigate these losses thanks to the insurance.
The Insurance Regulatory and Development Authority of India or IRDAI has previously given new proposals on health, life, property, non-life and motor intermediaries. The importance of fostering growth in the Insurance sector is important and crucial at times like these. Regulatory sandbox approach is a method of filtering out a safe and automatic simulation of an environment with innovative ideas and new techniques without any consequences of possible failures. From the data in hand right now, it is possible to run thousands of simulations that can have a strong impact on the regulatory sandbox approach. Using this approach, IRDAI has precise calculations regarding where the product and services should be offered by the insurance company. IRDAI said that they have created this framework with certain objectives in mind for the accelerated growth in the Insurance sector. In case they face an unfortunate situation the consequences of that failure can be contained within the framework.
IRDAI invites applications to various cohorts that can contribute to the regulatory sandbox approach. interested members should start filing the applications between 15 September 2020 to 14 October 2020. In 2019 IRDAI had issued or similar invitation for applications which has been invoked a response from different companies including different sectors and insurers. The primary focus of IRDAI is to use the framework to create a balance between development in the insurance sector and protect the interest of the policyholders. The products which were given more focus under this regulatory framework are as follows: Insurance gift card, loss limit insurance, wearable fitness tracker, digital wallet program. Various intermediaries are a contributing factor in this framework, the involvement of the evaluation committee is imminent considering the verdict can trigger a sensitive impact in the confidence of IRDAI in this approach.
Maximum possible alternatives and implementations should be tested in this framework. Certainly, all these new methodologies will show a promise in the protection of policyholder’s interests, such provisions should be deemed only on strict regulations for the security of the insurance company and policyholders. That should be the major objective of IRDAI.