Insurance regulations should be developed in a way that encourages rather than hinders insurtech, according to a briefing by the industry body Insurance Europe.
The report says that: ‘Insurance legislation, rules or guidelines should be digital-friendly, technologically neutral and sufficiently future-proof to be fit for the digital age and encourage digital innovation’.
It endorses regulatory sandboxes and other aids to innovation, highlighting the FCA’s Project Innovate initiative as an example. Insurance Europe says insurance regulations do not ‘allow consumers, established companies and new market entrants/startups to benefit from the opportunities digitilisation can offer’.
While recognising that there should be no unnecessary barriers to insurtech startups, Insurance Europe underlines the need for existing insurers to also have ‘the opportunity to develop innovative products and services’.
RDT facilitates innovation for existing insurers and helps them harness the benefits of insurance technology while meeting regulatory requirements. It works to identify opportunities and negotiate any issues, and last year reported to the FCA on the impact of big data on consumers.
As an insurtech accelerator, collaborating with insurers across the motor and household sectors, RDT combines technology partnership with a comprehensive understanding of the regulatory framework for insurtech.