GFIA has published its response to an issues paper by the International Association of Insurance Supervisors (IAIS) on the increasing use of digital technology in insurance and its potential impact on consumers.
Effective and efficient supervision requires a balanced approach that encourages and supports innovation, while assuring legal compliance. However, while a few sentences in the paper mention some positive impacts for consumers from innovation, overall the paper is negative towards innovation.
There is a pressing need for more dialogue between insurers,supervisors and the IAIS in order to achieve a proper balance. The IAIS paper should also discuss in greater depth work being done by insurers and supervisors to provide balance and improve dialogue.
GFIA also outlined a set of guiding principles for innovation and insurance, and called on the IAIS to consider them.