Padraig Walsh, partner at international law firm Bird & Bird, looks at the rise of regulation in the InsurTech sector.
The convergence of technology and regulation in the insurance sector is a topic of vital concern. In fact, the ingredients for disruption in the space, and the current economic drivers for change, have been particularly compelling in recent years.
In the future, we will see transformation at each stage of the insurance product cycle; across products, distribution, underwriting, administration and claims.
This innovation will rely on technology such as:
1. Internet of Things (IoT)
Sensors in cars, property and personal devices will provide information that will directly feed into the insurance products and insured purchases.
Insurance will become tailored to the individual’s track record, risk profile and behaviour – all tracked in real-time. Insurance products will become available on a pay-as-you go or just-in-time basis, to fit a modern lifestyle in which insurance may be required for a limited period, or based on renting rather than owning assets....