Preparation for major changes in the insurance sector, consideration is being given to increase the period of testing new products

The chairman of IRDA said that all these steps will increase the reach of insurance to the people.

The Insurance Regulatory and Development Authority of India (Irdai) is considering to extend the testing of products by three months under the regulatory sandbox mechanism. The chairman of IRDA said that all these steps will increase the reach of insurance to the people.

Insurance Regulatory and Development Authority of India (Irdai) Under the regulatory sandbox mechanism, the testing of products is looking to increase by three months. The chairman of IRDA said that all these steps will reach the people. insurance (Insurance) It will increase the reach and help in making insurance available to more and more people. A sandbox refers to the environment used in the financial services sector, in which testing is done for new business models, processes and applications. It is not necessary that the business model (Business Model) Existing regulations in full (Regulations) be followed.

Debashish Panda, Chairperson, IRDA said that the insurtech ecosystem is expected to grow in the coming days. He said that they already have a regulatory sandbox mechanism in IRDA, where the proof of concept can actually be tested on the ground. He further said that he has been informed that there are some shortcomings in the regulatory sandbox.

plan to increase from six months to three years

Panda said that now he realized that it is a continuous process. Insurance companies are allowed to test such products in the market for a period of six months only. He said that they are now proposing to increase this period to three years. This is especially for life insurance products. He further said that the work is in progress and growth is expected in insurtech companies. Now technology is also coming.

Panda also mentioned that IRDA is looking at the possibility of allowing small companies in the insurance sector as well. He said that look at the banking system, we have different companies. In this way the reach of banking has increased in the country, that today there are more than 130 crore accounts. So, we are trying to think about micro insurance companies.

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Apart from this, IRDA is looking to introduce premium financing for the customers. IRDA’s plan is that people get a loan for the premium of insurance and they can pay it later in installments (EMI). At present, such a system does not exist in India.