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As part of the European Commission's Fintech Action Plan, with this Report EIOPA presents a mapping of current authorising and licencing approaches to financial innovation, including an assessment of how the principle of proportionality is applied in practice. The Report also includes an analysis of the approach to InsurTech start-ups operating as peer-to-peer (P2P) insurers.
It also highlights emergent best practices for national competent authorities (NCAs) to support a more systematic approach to InsurTech licencing requirements as well as to ensure through a common application of the proportionality principle consistent and effective supervisory practices across Europe.
The evidence gathered points to an InsurTech market in the European Union that remains at an early stage of development, but which at the same time is evolving. Most NCAs have limited experience with InsurTech companies or do not differentiate "digital" business models from others. Nevertheless, the joint report on innovation facilitators identified that 24 NCAs have implemented innovation facilitators, which implies that most NCAs are well aware of the importance of innovative technologies and new market players, and the need to understand the associated risks and benefits.
To prepare for potential associated risks NCAs should further enhance cooperation and the exchange of experience among each other and with EIOPA. To this end, EIOPA will work together with NCAs and InsurTech firms by: