November 2021 is the month of the first turning point for the regulation of the insurtech ecosystem: applications to participate in the regulatory sandbox promoted by the Ministry of Economy and Finance in partnership with Ivass, the Bank of Italy and CONSOB open on Monday 15.
This project is essential to trigger the digital transformation of the insurance sector, currently struggling with the lack of an effective regulatory framework.
What exactly is a sandbox?
The sandbox, term that refers to the enclosed playground that children use to play in, is a controlled environment with simplified rules and low costs for testing new innovative products or services, on a small scale and for a limited time.
Already widely used abroad, the sandbox is a tool for fostering innovation in contexts with complex regulations such as fintech and insurtech.
The benefits of a regulatory sandbox are not limited to the greater freedom of testing for startups, but also engage investors, making it easier for them to finance projects in Italy thanks to the presence of a simplified and at the same time regulated framework, therefore reducing risks.
And that’s not all: Ivass – the Institute for Insurance Supervision – will use the insurtech sandbox as a testing board to evaluate innovative projects and implement the necessary regulatory interventions to ease the technological and digital development of the insurance sector, reducing potential risks.
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