IDRA to issue Regulatory Sandbox Guidelines-2023

The Insurance Development and Regulatory Authority (IDRA) is issuing a Regulatory Sandbox Guidelines-2023 for maintaining a balance between the orderly development of the insurance sector and the protection of the interests of insurance customers and to involve the information technology sector in insurance services.

Under these guidelines, Insurers, Insurtech/Start up organisations and any other person or organisation selected by the authority shall engage in testing and implementation (subject to the approval of the authorities) of insurance plan development, insurance product marketing (including e-commerce), provision of insurance claim settlement services, underwriting and any other class of insurance as prescribed by the authority.

Under the regulatory sandbox, insurers and various Insurtech / Start up organisations will create opportunities to bring new products or services which will play an important role in the qualitative development of the insurance industry and the formation of a technology-based insurance industry.