Supervising InsurTech (September 2017)
Emerging technological innovations in the insurance value chain are confronting supervisors with new questions. Consumers’ needs have evolved, distribution channels have digitalised, the Internet of Things is affecting how risk is underwritten and predicted, and Peer-to-Peer technology is set to affect claims management. All these aspects hold great promise for extending access to insurance for those previously underserved by more traditional business models. However, extending the reach of insurance coverage more widely and the complexity of some of the business models used also presents a number of risks which must be addressed. On this call we explored emerging technologies and how they affect the market and consumers. We also took a look at some regulatory approaches which have been taken, such as setting restrictions, or facilitating some technologies. We saw what has already been done to help supervisors understand technological innovations and what the status quo is in terms of principles and guidelines for supervision. The material from this call should help regulators and supervisors to strike a balance between facilitating innovation and unlocking its potential benefits to the insurance market, increasing the inclusiveness of the insurance sector, and maintaining the conditions for a fair, safe and stable insurance sector for the benefit and protection of policyholders.