Insurance Europe has today published its response to a consultation by the European Insurance and Occupational Pensions Authority (EIOPA) on the (re)insurance value chain and new business models arising from digitalisation.
Increasing digitalisation means that the diversity of providers and
partners in the insurance sector is expected to increase. In fact,
insurers are already engaging in a range of partnerships and
collaborations for the benefit of their customers.
A more diverse market does however mean that it will become even more
crucial to maintain a level playing field and fair competition. Where
new service providers enter the market, the regulatory framework offers
effective protection to customers only when new entrants are subject to
the principle of “same activities, same risks, same rules”.
Insurers also face limitations and restrictions when implementing
innovative digital strategies. Under Solvency II, some new digital
activities might be classified as “non-insurance business” and
consequently not be permissible. This is counter to the level playing
field principle and puts insurers at an unjustified disadvantage
relative to other digital economy participants.
The current definition of “insurance business” should therefore be
reconsidered so that new cooperation and digitally related activities of
insurers are encouraged and are considered to be an integral part of
their core insurance business.
response
Insurance Europe
© InsuranceEurope
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article