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InsurTech and the regulators

When disruptive technology and regulation meet, the world changes.

Pity the poor regulators faced with competing demands:

 

 

 

Oh, and do all that when technology keeps changing the game. For example, think of Auto Insurance, IOT and Self Driving Cars.

 

Auto Insurance, IOT and Self Driving Cars

This is just one segment of Insurance, but think of these tough questions:

 

Then we have the regulation that used to be simple – Capital Adequacy.

Capital Adequacy

In ye olden days, Capital Adequacy simply meant a Regulator telling the Insurance company how much capital they need to hold in reserve. Only big established firms could play this game. Now think of these tough questions:

 

 

Smart Contract meets big legal bills

You sign up for an instant payout policy (real time settlement) where proof of event is recorded on an immutable blockchain. The payout should be automated and immediate, but it does not happen. Who ya gonna call?

You are from Switzerland, but you are visiting New York, the Insurtech startup is in London, but is regulated in Bermuda and the servers are Iceland. Your lawyer starts talking about jurisdictional issues while he plans for a long and expensive project.

Bernard Lunn is a Fintech thought-leader and deal-maker. 

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