The Geneva Association announced these results in an issue brief titled Regulatory Considerations for Digital Insurance Business Models. This is one of several findings by the association which conducted a global survey of insurers and reinsurers in July and September last year. The results of the survey form the basis of the issue brief.
Other key findings are:
- Insurance regulatory frameworks are perceived to be much less conducive to digitalisation than macro-level factors, such as government policies, digital infrastructure and local culture.
- The three most cited regulatory barriers are paper document delivery provisions, insurance distribution regulation, and a lack of telehealth provisions for medical exam procedures.
- Engagement and co-operation between regulators and the insurance sector, and a technology-agnostic regulatory framework, are the two most common factors for conducive regimes.
Covid-19 highlights critical role of frameworks
The Geneva Association says that the Covid-19 pandemic has highlighted the critical role played by national regulatory frameworks in both hindering and facilitating the shift to digitalisation in the insurance industry. Digitalisation is not a goal in itself, but provides insurers and their customers with benefits that are particularly useful in situations where in-person interactions cannot take place, played out in its fullest form during the Covid-19-induced lockdowns.
The Association encourages regulators to deepen exchanges with their peers, particularly in countries that have a thriving digital insurance ecosystem, such as Singapore and China.