The Insurance Regulatory and Development Authority of India (IRDAI) on November 04, 2024, issued the draft of the IRDAI (Regulatory Sandbox) (Amendment) Regulations, 2024.
The IRDAI issued the following proposed amendments to the Regulatory Sandbox regulations and seeks comments from the public on the proposed amendments based on the recommendation of the Committee.
The amendment to the regulations is based on the following approach:
• Adoption of principle based approach over rule based approach.
• No hard-coding of values, numbers, etc in the regulations.
• Operational issues to be covered in the master circular.
• Regulations to facilitate the introduction of innovative ideas/ new concepts across the insurance value chain
Based on the experience gained and new developments in the market the following are proposed as new additions to the regulations:
• Definition of “competent authority”
• Excluding areas involving prudential and financial condition/ stability matters, such as capital, liquidity, investment, solvency, reserving and such other areas as decided by the Authority from time to time from the purview of Regulatory Sandbox.
• Objective of regulations to explicitly state – “facilitate innovation in the insurance sector while ensuring orderly development of the insurance sector and protection of interests of the policyholders”
• Conditions for grant of permission to include “promotes innovation beneficial to the insurance sector in India”
• To facilitate the introduction of an Inter-Regulatory Sandbox proposal wherein “the process and procedures in dealing with regulatory sandbox applications that cut across more than one financial sector” will be permitted.
The draft Insurance Regulatory and Development Authority of India (Regulatory Sandbox) (Amendment) Regulations, 2024 is annexed herewith (Annexure-A). All the stakeholders are requested to forward their comments/suggestions, if any, on the proposed regulations in the attached format (Annexure- B) on or before 5:00 PM on November 25, 2024 to [email protected] and [email protected].
[Notification No. IRDAI/ Reg Sandbox/ 11/ 2024]
