Thread alert on IRDAI Regulatory Sandbox. Did an article on the topic a few days ago to demystify it. After having thrown some light on the regulation, I seek a few answers. Tweeps, time to return the favour :) Both answers and questions are welcome [1/n]
Q1) Assuming an innovation requires relaxation in the existing regulations, which the regulator grants. What would happen to the innovation after the testing period of 6 months is over and the innovation, by design, cannot comply with the existing regulations? [2/n]
Q1) For example, pay-as-you-go insurance products are not allowed by the existing regulations. What happens if the innovation loses meaning without the relaxation of this particular norm? [3/n]
Q2) While the customers part of the pilot would be made aware of the fact that the products are in the testing phase (and may fail). How would "Treating Customers Fairly" be met if the innovation actually fails during the testing period? [4/n]
Q2) For example if a customer buys insurance to cover him for home content insurance, pay the entire year's premium at the inception. However, after 6 months of the testing period, the innovation is not "approved". What would happen to the cover and the premiums paid? [5/n]
Q2 was inspired by this tweet of @mkpandey67 -
[6/n]
@mkpandey67 The questions so far were queries on the current version of the IRDAI's Regulatory Sandbox. The following tweets are recommendations that can potentially increase the impact of Regulatory Sandbox. Thoughts/Viewpoints are welcome. [7/n]
@mkpandey67 Recommendation 1: Would it make sense to collaborate with cross-industry Regulatory Sandbox? For example, the sandbox of RBI and SBI? [8/n]
@mkpandey67 Recommendation 1: This would be important for a certain type of insurance product. An example of this could be insurance cover for crypto assets. To put things in perspective, RBI doesn't quite support crypto assets while such insurance products exist overseas market [9/n]
@mkpandey67 Recommendation 2: Would it make sense to have the cross-border collaboration of Regulatory Sandboxes? For example, if an #InsurTech which went through the drill as part of FCA's sandbox, does it need to go through the process again in India? [10/n]
@mkpandey67 Recommendation 2 was inspired by this article from
@raconteur
buff.ly/2okeKQl [11/n]
@mkpandey67 @raconteur Lastly, for those wondering what Regulatory Sandbox means and in particular what does IRDAI's Regulatory Sandbox entails, here is the link to my article which demystified it.
medium.com/@sumit_79708/i… [n/n]
@mkpandey67 @raconteur Updated article based on the IRDAI NASSCOM event in Bangalore - More details under "Edit 2" of this article - medium.com/@sumit_79708/i…
#IRDAI #NASSCOM #InsurTech #Actuary #Bangalore
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