In a recent circular, it was revealed that the regulator IRDAI is working on the guidelines for ‘sandbox’ method which will allow insurance companies to test products in a particular geography or among a set of few policyholders before they are available in the market.
Mr. Prasun Sikdar, Managing Director & Chief Executive Officer at Cigna TTK Health Insurance Company, sharing his insights on this initiative.
“It’s an inspired proposal by IRDA which is presently at conversation stage, if the insurance companies are permitted to test products in a particular geography or among a set of few policyholders before they are officially launched in the marketplace, then, we believe that this will encourage insurers to create more comprehensive, innovative, personalized, and affordable suite of healthcare solutions benefiting the end consumers.
Product testing in a particular geography is a progressive step to unleash innovation, ensure the acceptability of products by end-consumers, and lastly to help create pull market in health insurance. It’s a serious concern that insurance penetration in the country is substantially much lower against global average, nevertheless, with innovation driving newer affordable insurance products, the penetration level in the country can be expected to increase considerably going forward.”