Money & Banking

IRDAI plans to start accepting applications from Sunday

Our Bureau Mumbai | Updated on September 13, 2019 Published on September 13, 2019

The Insurance Regulatory and Development Authority of India (IRDAI) will start receiving applications for regulatory sandbox from September 15, giving an opportunity to insurers and insuretech firms to experiment more with technology.

“The regulatory sandbox will be opened from September 15 for 30 days till October 14. Its purpose is to introduce a ‘test and use process’ and help manage risk better for insurers,” said Sujay Banarji, Member, IRDAI, on Friday.

Addressing a CII conference, Banarji said the IRDAI is also testing applications to allow companies apply online.

A regulatory sandbox will have a number of benefits, including best-in-class service to customers, reducing the time to market products at potentially lower costs, better access to finance, more innovative products, regulatory clarity, and limited failure consequences, he noted.

‘To foster collaboration’

“Regulatory sandbox will foster collaboration and further the interests of all stakeholders, that is regulator, insurance companies, start-ups, and end consumers,” Banarji stressed.

Meanwhile, addressing the conference, Randip Singh Jagpal, Chief General Manager, IRDAI, said that using the sandbox, innovation is expected both in products and services as well as technology. “In terms of technology, this is expected in mobile technology, data analytics, blockchain, API integration, machine learning, and AI in designing and rating of products,” he said, adding that in products and services, innovations are expected in terms of digital KYC, smart contracts, cyber security, and developments around marketplaces.

According to the IRDAI notification, insurers, intermediaries, any person other than an individual with a net worth of at least ₹10 lakh for the last financial year, can individually or jointly seek permission from the IRDAI to participate in the regulatory sandbox.

The regulations will remain in force for two years.

“The objectives of these regulations are to strike a balance between orderly development of insurance sector on one hand and protection of interests of policyholders on the other, while at the same time facilitating innovation, and to facilitate creation of regulatory sandbox environment and to relax such provisions of any existing regulations framed by the authority for a limited scope and limited duration, if such a relaxation is needed,” the IRDAI had said in the notification.

The categories of application include insurance solicitation or distribution, insurance products, underwriting and policy, and claims servicing.

Published on September 13, 2019

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Sincerely,

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.