InsurTech Innovation and Modernization is Under a Microscope
The term “InsurTech” encompasses the movement of technology-driven disruption and innovation across the global insurance eco-system seeking to transform traditional concepts of risk sharing, insured risk management and the customer experience. InsurTech is already employing technological innovation to enhance existing operational capacity, improve efficiency, reduce costs, and change how risk is measured, priced and managed. InsurTech will also improve the lives of insurance buyers by empowering them with significantly greater options and choice, savings, and the ability more efficiently manage their own risk.
This transformation, however, cannot occur in a vacuum. The business of insurance in every country in the world is highly regulated. Government regulators impose strict controls over virtually every aspect of how insurance companies are able to conduct their business. Those controls include numerous financial and capital standards, the products that can be sold, how they can be sold (including in many cases the price), and insurance companies’ interactions with their customers to name just a few. Government regulators, including state insurance regulators in the U.S., are already beginning to examine technological innovations like the use of Artificial Intelligence (AI) to determine whether they comply with existing regulatory requirements. In many cases the ability of companies and consumers to enjoy the benefits of technological innovation will hinge on the approval of government regulators.
AITC serves as the independent voice for Insurtechs in the U.S. Like the insurance industry, state insurance regulation will also need to transform to remain relevant and responsive to consumer demands. One of AITC’s core missions will be to work with Governors, state legislators and regulators (both alone and in conjunction with other industry trade associations) and federal policymakers to support the modernization of the state-based system of regulation that is vital to ensure essential consumer protections and a vibrant, innovative industry.
AITC provides a vital single point of contact with government regulators and policymakers on the issues and priorities facing this rapidly growing industry segment. AITC serves as an educational and policy development resource to encourage and promote a modern regulatory environment for insurance products and services across all lines of business that encourages innovation while ensuring important solvency safeguards and consumer protections. AITC will also function as a hub connecting Insurtechs, incumbents, regulators and other policymakers, investors, service providers, and developers of innovative solutions for the industry. Sponsorship in AITC is open and available to stakeholders representing every segment of the insurance industry: life and health, property and casualty, commercial lines, reinsurance. Start ups and developers of innovative solutions for the insurance industry are also welcome, as are the various providers of expert professional services to the industry. If you are interested in learning more about AITC we welcome you to contact us and look forward to hearing from you.