Irdai proposes to amend regulatory sandbox norms

Regulator Irdai has proposed to amend the norms related to ‘regulatory sandbox’ by incorporating principle-based approach and further facilitating the adoption of innovative ideas and new concepts across the insurance value chain.

Regulatory sandbox usually refers to live testing of new products or services in a controlled/test regulatory environment for which regulators may or may not permit certain relaxations.

The Insurance Regulatory and Development Authority of India (Irdai) constituted an internal committee to review the Irdai (Regulatory Sandbox) Regulations.

Based on the recommendations of the committee, it has proposed amendments to the regulatory sandbox regulations and seeks comments from the public at large on the proposed amendments.

Issuing an exposure draft on regulatory sandbox regulations, Irdai said the amendment seeks adoption of principle based approach over rule based approach.

The changes to the norms are also aimed to facilitate the introduction of innovative ideas/new concepts across the insurance value chain, Irdai said.

Irdai has invited comments from the stakeholders on ‘Exposure draft – Irdai (Regulatory Sandbox) (Amendment) Regulations, 2024’ by November 25.