IRDAI has constituted a committee, comprising its officials as well as senior executives of a few insurers, to study regulatory issues fin-tech poses for insurance.
Besides in a fast evolving financial technology landscape, the move comes amid the authority’s emphasis on adopting a regulatory sandbox approach to experiment with fin-tech solutions.
Such an approach “can be used to carve out a safe and conducive space to experiment... where the consequences of failure can be contained,” the Insurance Regulatory and Development Authority of India’s communication constituting the 10-member committee said.
With IRDAI Chief General Manager Randip Singh Jagpal as the chairperson, the committee would identify key regulatory issues and gaps pertaining to fin-tech in insurance.
For a draft consultation paper on regulatory sandbox in insurance space it would be submitting, the panel would study regulatory developments related to fin-tech and practices followed in other financial sectors such as banking and capital markets. The practices in other international jurisdictions, particularly in Singapore, the U.K. and Hong Kong, will also be studied.
The committee would also be seeking feedback from the industry participants and understand the requirements of the insurance industry in the country. Besides six IRDAI officials, Aditya Birla Health Insurance CEO Mayank Bathwal, HDFC Standard Life Insurance COO Subrat Mohanty, ICICI Lombard General Insurance’s VP-Business Intelligence Chirag Bhojani and a representative from World Bank figure in the committee.
A few more CEOs of insurers are to be co-opted on a need basis for specific meetings.
IRDAI Chairman S.C. Khuntia noted how new insurance companies and intermediaries have been applying technological innovations in their products and services. A responsive and forward looking regulatory approach will further enhance the ability of promising fin-tech innovations to develop and flourish, he said in the communication.
