HB 402: Creating an Insurance Sandbox in Utah
This bill passed the house with a vote of 58-11, and passed the senate with a vote of 27-1.
Technology today is growing at a rapid pace, while the regulators responsible for overseeing these goods and services are adjusting at a much slower pace. This has led to conflicts around the country between federal and state regulators and businesses that are offering disruptive goods and services that are redefining industries. A solution was needed that would enable smaller size firms to experiment and disrupt their industries without needing the millions of dollars in venture capital to back up their endeavors.
A regulatory sandbox is an environment that allows for businesses offering new and innovative products to test them in a controlled environment with a regulators lighter touch, rather than trying to force a square peg of traditional regulations in a round hole of a unique product that does not fit the bill.
House Bill 402, being sponsored by Representative Adam Robertson, would create a regulatory sandbox for the insurance industry. Insurance is a huge cost that both enterprises and consumers face alike, and this sandbox offers an opportunity for companies to experiment with goods and services that could improve the quality of life for Utah consumers and businesses alike.
To learn more about regulatory sandboxes, check out our policy brief.