Irdai permits testing of products under regulatory sandbox approach

Irdai has also said that there would be defined entry and eligibility criteria as well as exit parameters for the applicants

The insurance regulator on Tuesday granted permission to insurance companies and intermediaries to test their products under the regulatory sandbox approach for a period of six months (which can be extended upto 12 months) before launching it in the market.

"However, if the proposal covers 5,000 persons or completes Rs 50 lakhs of premium or any other parameter which the authority specifies, the proposal will deem to have been completed," said Irdai.

The regulator has also said that the applicants be it an insurer, insurance intermediaries or any other entity who are planning to apply for the process and test their product