金融科技在保险业的发展（英文版）_46页-1mb

FinTech Developments in the Insurance Industry Summary

Core Content

The document explores the impact of Financial Technology (FinTech) on the insurance industry, with a specific focus on InsurTech innovations. It outlines the current state of technological advancements, their drivers, and potential future scenarios, aiming to provide a strategic overview for insurance supervisors and regulators.

Main Viewpoints

• FinTech and InsurTech Definitions:
  FinTech refers to "technologically enabled financial innovation that could result in new business models, applications, processes, or products with an associated material effect on financial markets and institutions and the provision of financial services." InsurTech is the insurance-specific branch of FinTech, encompassing emerging technologies and innovative business models that can transform the insurance sector.

• Drivers of Innovation:
  The development of InsurTech is driven by both push and pull factors:

  • Push factors include increased investment in the FinTech ecosystem, enhanced intellectual firepower, and the availability of data and analytical tools.
  • Pull factors involve societal changes, the pursuit of competitive advantages, and the need for back-office efficiency.

• Technological Innovations in Insurance:
  Key innovations include:

  • Digital platforms (internet, smartphones)
  • Internet of Things (IoT)
  • Telematics / Telemetry
  • Big Data and Data Analytics
  • Comparators and Robo advisors
  • Machine Learning (ML) and Artificial Intelligence (AI)
  • Distributed Ledger Technology (DLT), Blockchain, and Smart Contracts
  • Peer-to-peer, Usage-Based, and On-Demand Insurance

Key Information

• Investment Trends:
  Global FinTech investment has grown significantly, with over $50 billion invested in more than 2,500 FinTech companies since 2010. In 2015, InsurTech start-ups attracted $2.5 billion in investment, three times the amount in 2014.

• InsurTech Start-ups:
  A large number of new companies are targeting the insurance sector, focusing on all areas of the insurance value chain. These start-ups often collaborate with traditional insurers, but some are exploring models that may eliminate the need for traditional insurers altogether.

• Scenario Analysis:
  The document presents three main scenarios for the future of the insurance industry:

  • Scenario 1: Incumbents maintain customer relationships and use technology for their benefit.
  • Scenario 2: The insurance value chain becomes fragmented, with insurers relying on technology firms.
  • Scenario 3: Big technology firms (BTFs) leverage their technological and analytical advantages to outcompete traditional insurers.

  Each scenario has implications for the insurance landscape and the supervisory approach, including:

  • Competitiveness: Likely to decrease due to technological efficiency.
  • Consumer Choice: May decrease due to product customisation and data asymmetry.
  • Interconnectedness: Increased reliance on common technology platforms raises systemic risk.
  • Regulatory Oversight: More participants in the value chain may challenge traditional regulatory frameworks.
  • Business Model Viability: Traditional models may become less resilient over time.
  • Conduct of Business: Risk of products reflecting firm objectives rather than consumer needs.
  • Data Ownership: Increased data collection from connected devices requires robust data protection measures.

Supervisory Considerations

• Regulatory Adaptation:
  Supervisors must evolve their frameworks to ensure policyholder protection while fostering innovation. This includes reassessing regulatory perimeters, capital requirements, and consumer transparency.

• Data Protection:
  With the rise of IoT and Big Data, supervisors should consider data transferability and implement robust IT management, cybersecurity, and internal controls.

• DLT and Smart Contracts:
  DLT may require changes to existing regulations and the creation of new legal and liability frameworks. Smart contracts need stakeholder alignment and governance considerations.

• Innovation Support:
  Supervisors should create environments that support innovation, such as regulatory sandboxes and innovation hubs.

Conclusions

• Uncertainty and Unknowns:
  The insurance industry faces many uncertainties regarding the long-term impact of FinTech. The outcome will depend on both technological disruption and societal changes.

• Future Strategic Direction:
  The scenario analysis aims to guide the IAIS and other stakeholders in shaping future regulatory strategies and work packages. It highlights the need for ongoing monitoring, adaptation, and collaboration to address the evolving landscape of insurance technology.

• Challenges for Supervisors:
  Near-future challenges include understanding new technologies, balancing innovation benefits with risks, and ensuring adequate technical resources and stakeholder engagement to manage FinTech developments effectively.