Sandbox guidelines

Subject: Economy

Context: IRDAI proposes extension of regulatory sandbox guidelines by 2 years for proposals under it needs more time for completion.

Concept:

To give a fillip to insurance penetration and facilitate innovations in the sector, especially those triggered by technology, the regulator had notified the IRDAI (Regulatory Sandbox) Regulations, 2019 on July 26, 2019.
Sandbox regulations is live testing of new products or services in a controlled/test regulatory environment for which regulators may (or may not) permit certain relaxations for the limited purpose of the testing.
It allows regulator, innovators, financial service providers and customers to test a product or service for its risks as well as benefits.
It is a way of promoting innovations particularly for financial products like in banking, insurance etc.

Source: medium.com