regulatory sandbox

A regulatory sandbox is a limited-time controlled testing framework established by regulators that allows insurers, financial institutions, InsurTechs, fintechs, or others to test new products, services, technologies, or business models under regulatory supervision. While being conducted, the sandbox may permit modified or limited regulatory requirements. It generally includes safeguards such as eligibility criteria, defined testing parameters, consumer protections, reporting obligations, and an approval or exit process. The goal is to encourage innovation while at the same time helping regulators evaluate risks, compliance issues, and whether existing rules should be adapted.