Insurance Sector Looks to Balance Technological Innovation and Consumer Protection
InsurTech promises vast potential for transforming the world of insurance. These emerging technologies and innovative business models are already disrupting the industry, and bringing positive changes to how inclusive insurance operates, fostering better product design and risk assessment, improving efficiency and reducing costs. These efficiency gains can lead to lower premiums, better client servicing and faster payouts. Ultimately, they translate into greater access and better value for low-income and emerging consumers. But InsurTech innovation could also have negative implications, for example by potentially increasing the risks of cyber-attacks, or by excluding lower income and higher risk consumers.
According to the World Insurance Report 2017, there are now around 1,000 InsurTech start-ups representing a combined investment of USD 2 billion worldwide. “Ongoing innovations in InsurTech present great opportunities but may also increase the complexity of the insurance business and the supply chain. The fast pace of change presents a challenge for regulatory frameworks. Supervisors must remain alert to these changes and consider how these new business models and new actors in the value chain impact regulatory objectives such as data protection, cybersecurity and policyholder protection, to name but a few,” explains Jonathan Dixon, Secretary-General of the global insurance standard-setting body, IAIS.
These are some of the issues that will be tackled by 60 high-ranking representatives from insurance supervisory and regulatory authorities, the insurance industry and the public sector from over 20 countries in Colombo, Sri Lanka tomorrow, 20 March, at the 12th Consultative Forum - InsurTech: Rising to the Regulatory Challenge.