When Gabriel Berndardino, the chair of the European Insurance & Occupational Pensions Authority (EIOPA) delivered the key note speech at yesterday’s 6th EIOPA Annual Conference in Frankfurt, he told delegates that, whilst there’s always been change, “the change coming from the digital era is different: … it is not incremental; it is disruptive. The entire insurance value chain will be impacted … big data and telematics, comparison websites and automated advice tools will impact the interface with consumers. The increasing amount of personal data available and the power of data analytics will inevitably change insurance underwriting models … [This] has the potential to produce better outcomes for customers …. But also raises … issues in terms of access to financial services …, the transparency regarding the use of personal data and cyber security risks“.
So, starting in 2017, EIOPA will organize a series of InsurTech roundtables to help it understand InsurTech; the benefits and risks that InsurTech could generate for consumers; and the obstacles to good InsurTech innovation. EIOPA will draw on these roundtable discussions as it tries to develop Europe’s regulatory framework in a way that will “promote the highest standards of consumer protection while not hindering innovation“. The Insurance Distribution Directive (#IDD / IMD2) is the start of this journey. It’s plainly not the end.