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Increasing digitalisation means that the diversity of providers and partners in the insurance sector is expected to increase. In fact, insurers are already engaging in a range of partnerships and collaborations for the benefit of their customers.
A more diverse market does however mean that it will become even more crucial to maintain a level playing field and fair competition. Where new service providers enter the market, the regulatory framework offers effective protection to customers only when new entrants are subject to the principle of “same activities, same risks, same rules”.
Insurers also face limitations and restrictions when implementing innovative digital strategies. Under Solvency II, some new digital activities might be classified as “non-insurance business” and consequently not be permissible. This is counter to the level playing field principle and puts insurers at an unjustified disadvantage relative to other digital economy participants.
The current definition of “insurance business” should therefore be reconsidered so that new cooperation and digitally related activities of insurers are encouraged and are considered to be an integral part of their core insurance business.