THE Insurance and Pensions Commission (Ipec) has introduced regulatory sandboxes which allow industry players to pilot their products before full implementation as it seeks to ensure products meet the needs of the market.
The regulatory sandboxes will also provide a controlled testing environment.
“The regulatory sandbox is a platform which enables insurers to pilot products within set guidelines that are allowable by the regulator,” Ipec insurance and micro-insurance director Sibongile Siwela told NewsDay Business.
“So, if insurers say: ‘I have this product which I want to try in the market’, with the approval of the regulator, they will be able to pilot the product, and depending on the results, they can go ahead or they can withdraw if the product is not desirable and can go and fix certain aspects of the product.”
Siwela said the sandboxes would serve as platforms for insurers, Insurtech startups, and other stakeholders to collaborate with regulators and explore new ideas that have the potential to enhance the efficiency, accessibility and affordability of insurance products and services.
“As Ipec, we are amenable to market players coming on board with innovations for testing within agreed parameters to foster the development and growth of our insurance market,” she said.
Concerning other initiatives, Siwela said through use of advanced technologies such as artificial intelligence and machine learning, insurers can automate manual processes, streamline underwriting and claim handling, and improve operational efficiency.
She added that innovations like data analytics and predictive modelling helped insurers to assess risks more accurately and efficiently.
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“By analysing vast amounts of data, including social media posts and external sources, insurers can better understand individual risk profiles, detect fraud and develop targeted risk mitigation strategies.
“Innovative technologies enable insurers to provide enhanced customer experiences. This includes digital platforms and mobile applications that offer convenient access to policy information, self-service options, and simplified claim processes,” Siwela said.
