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Soon, you will have access to innovative and tech-driven insurance products that are the first of their kind.
“We will announce the list of approved proposals received in response to our ‘regulatory sandbox’ model in about a month,’’ Subhash Chandra Khuntia, Chairman, Insurance Regulatory and Development Authority of India (IRDAI), told Business Line.
The regulatory sandbox here refers to live testing of new, innovative products in a controlled regulatory environment backed by relaxation of certain norms by the IRDAI for the limited purpose of testing. The objective behind this approach is to identify innovative ideas to foster growth in the insurance sector.
After calling for applications from life and general insurers, the insurance regulator had set up a panel to review the applications, received in October.
“We have received a fabulous response. As of now, 125 proposals based on digital and tech-driven innovations are being scrutinised,’’ Khuntia said.
Noting that digital innovations in insurance will facilitate speedy and accurate decisions, he said the ‘regulatory sandbox’ product applications show greater focus on harvesting data and digital solutions. Asked about the nature of products filed for approval, the regulator said: “They cover a wide range of aspects from change in the process of underwriting, policy wording, riders and interaction with policyholders, among others.’’
Six months of testing
The period of testing for approved products will be six months initially. But the IRDAI can extend this if the results are ‘promising’ and require more time to study.
The chief of a general insurance company, which has filed a few applications under the regulatory sandbox, said they had proposed to offer customised products in health insurance taking into consideration personal healthcare such as regular check-ups as well as exercise regimes.
“We have devices now like a wrist watch to keep a tab on your daily walking and pulse rate. By data analytics, we can harness that data,” he explained.
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