IRDAI sandbox | 16 products receive approval in second tranche
Under the sandbox method, entities can launch and test a product with a select group of people for a period of six months. Proposals related to disease management, trade credit insurance and rental vehicle accident cover received approvals
March 31, 2020 / 07:25 PM IST
A total of 16 products have received regulatory approval in the second tranche of Insurance Regulatory and Development Authority of India's (IRDAI) sandbox method. These include: dynamic term cover by ICICI Prudential Life Insurance, loyalty programme by HDFC Life and IndiaFirst Life Insurance, and livelihood protection by Reliance General Insurance.
The period of approval of these products is from May 1 to October 31. Under the sandbox method, entities can launch and test a product with a select group of people for a period of six months.
In the first tranche, 33 products of non-life and health insurers were approved for testing. Some of these included fitness tracker, app-based diabetes wellness programme, wearable devices for existing customers and new customers and wellness programme using trackers.
In the second phase, sandbox proposals of seven life insurance have been considered. Among general insurance products, covers related to total business protection (Bajaj Allianz General), network-based accident insurance for rented motor vehicle (Digit Insurance) and trade credit insurance were among the nine products approved.
In September last year, IRDAI called for applications from insurers and intermediaries under the sandbox method. The method helps gauge customer interest in an insurance product and reduces failure.
At present, about 780 life insurance and over 1,000 general insurance products are being sold in the market for individuals and groups.
The sandbox method is expected to help companies better the success rate with their products. According to industry estimates, at present for every 10 new products filed, two fail to make the mark.