Insurance Europe has published its response to a European Insurance and Occupational Pensions Authority (EIOPA) consultation, which will feed into its work on mapping supervisory approaches to insurtech and identifying possible regulatory barriers to financial innovation.
Regulation and supervision should be activity-based to ensure that customers have the same level of protection, regardless of whether they purchase insurance products from established insurers or from new market entrants. New market entrants should therefore be brought within existing regulation, with no need for any additional, specific regulation.
Proportionality must be applied consistently to rules to enable both established insurers and new market entrants to provide innovative products. This would avoid giving a competitive advantage to one type of company over another, when the activity and risk are the same. It would also allow consumers, established insurers and new market entrants to benefit from the opportunities digitalisation can offer.
Insurance Europe also provided EIOPA with examples of obstacles created both by existing European insurance legislation and non-insurance legislation, as well as its recommendations of ways to address them. It stressed that insurance legislation, rules and guidelines must be digital-friendly, technologically neutral and sufficiently future-proof to be fit for the digital age and encourage digital innovation.
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