Date: 8th September 2020

The InsurTech wave of innovation introduces and transforms existing business models. The extensive use of third-party providers and outsourcing may lead to both as well as a possible fragmentation of the insurance value chain. Nonetheless, several incumbent insurance-related companies, more or less have become software companies. The degree of this transformation is marked by the level of adoption of technological solutions in their core business processes.

We believe that there is the need to extend the regulatory arm to this new business ecosystem. In this respect, scholars noted that “regulation and uniformisation of practices are the best way to protect the economic and financial order, in addition to opening new choices to the market”. Regulation is needed in order to offer investor protection, preserve the benefits of the emerging
instrument and its underlying market, remove legal uncertainty, and create the necessary resolution mechanisms in case of a crisis. Deployment of ICT may require rethinking of oversight framework both at EU and national level.