Irdai panel wants ‘sandbox committee’ for digital innovation in insurance

An expert panel has suggested to insurance regulator IRDAI to set up a core ‘Sandbox Committee’ to promote digital innovation in the sector while safeguarding the interest of policyholders.

Loosely defined, a sandbox approach means experimenting and learning before finally adopting a technology or system. This approach helps in containing the impact of failures.

The Insurance Regulatory and Development Authority of India (IRDAI) had set up the 10-member expert panel to come out with a consultation paper on regulatory sandbox approach to enable testing of products in a controlled environment so that the industry could keep pace with the fast-evolving financial technology (fintech).