Irdai Expands Sandbox Framework for Innovation

New Delhi, Jan 13 (PTI) Regulator Irdai has expanded the scope of regulatory sandbox framework to encourage proposals that foster innovation, improve efficiency and ease of doing business.

The IRDAI (Regulatory Sandbox) Regulations, 2025 is now more of principle-based whereby operational aspects will be issued through a master circular, Insurance Regulatory and Development Authority of India (Irdai) said in a statement.

"A notable addition is an enabling provision to file Inter-Regulatory Sandbox proposals, cutting across more than one financial sector," the regulator said.

Regulatory sandbox usually refers to 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.

Further, regulations on maintenance of information by the regulated entities and sharing of information too have been consolidated by the regulator.

The regulation mandates electronic record-keeping with robust security and privacy measures, and requires regulated entities to adopt data governance framework and implement board-approved policies for record maintenance.

It also sets guidelines for sharing confidential information; and mandates data to be held in data centres located and maintained in India only.

Irdai also notified IRDAI (Meetings)(Amendment) Regulations, 2025; IRDAI (Insurance Advisory Committee) (Amendment) Regulations, 2025; and IRDAI (Re-Insurance Advisory Committee) (Amendment) Regulations, 2025.

These changes, the regulator said, align with Irdai's broader move towards a modern, dynamic and principle-based efficient regulatory framework.

By fostering innovation, enhanced governance norms and stipulations of maintenance of data security, these measures aim to drive sustainable growth, improve efficiency in operations and uphold policyholder protection in the dynamic insurance landscape, it said.