Overview
Emerging technologies are transforming the insurance sector. New technologies are creating higher levels of personalisation, innovative products and services, and exciting new business opportunities, while spurring competition in the global market and revolutionising the sector.
Trends
In every aspect of digital insurance, automation, Big Data analytics, cloud computing, apps and sensors, together with non-traditional business models, are allowing a greater access to insurance services, while offering a wider choice of products and increasing operational and cost efficiency.
New risks arising from autonomy (autonomous systems) and cyberthreats, as well as new legal and regulatory obligations the compliance of which may have to be insured, require a new approach, and bring new challenges, to insurance products. At the same time, technology and digitalisation bring new tools to assess whether the conditions for triggering the insurance are met.
Legal Challenges
New legal and regulatory challenges arise from the increasing digitalisation, automation and connectivity:
Digital transformation may expose the insurance market to additional systemic and external risks. It further demands new insurance products to be developed for new products and services increasingly relying on technology.
The deployment of novel technologies together with close collaborations with other entities may expose organisations to additional risks related to third-party activities and products, such as operational failures and malpractices.
The new fast-moving insurance ecosystem may be exposing users to additional risks, such as misinformation, data protection and security, which need to be mitigated.
The complexity of technologies such as AI and machine learning, DLT and Blockchain may blur the regulatory and legal obligations that were built on traditional relationships requiring regulatory certainty whilst ensuring that innovation is not hindered.
- Regulatory & Compliance
- Technology & Partnerships
- IP & Trade Secrets
- Data (personal and non-personal) & Cybersecurity
- Consumer Protection & Liability
- Testing of new technologies
Step-by-step
What?
Forces driving the market
Robo-advisors, machine learning and IoT are increasing the efficiency and effectiveness of the organisations and are offering new ways to deliver insurance services.
Cloud computing, data mining and analytics are bringing added value to the operations throughout the value chain, contribute to personalising insurance products to each individual case and allow better assessment of the conditions under which an insurance may be triggered.
Apps, social networks, sensors, smart devices and wearables are establishing market trust and allowing the construction of individual insurance products.
from on-demand and pay-per-use services to P2P micro-insurance, and the provision of insurance services in new markets such as AI, autonomous vehicles and cybersecurity, the insurance ecosystem is everchanging.
How?
Can we help you
VdA has vast experience and strong expertise in all policy, legal and regulatory matters associated with InsurTech. Our tech and industry insights allow us to provide 360.º legal services to organisations, governments, and regulators.
- Insurance companies
- Brokers
- Re-insurers
- Banks
- Investors
- Developers and technology suppliers
- Incubators and accelerators
- Governments
- Regulators
Our team of experts is delivering strategic and sophisticated legal advice to help our clients on their most challenging and promising projects. With a track-record of advising complex projects for leading companies in the sector as well as for the public sector, VdA services include:
Private sector:
- Advising on regulatory and compliance issues for developing, testing and deploying technologies in the Insurance sector, including InsurTech applications and services
- Advising on data (personal and non-personal), cybersecurity and liability issues, as well as on IP protection, technology partnerships and transfers
- Drafting and negotiating contracts for development, sale and purchase, provision of services, including terms of service and privacy policies for digital solutions
Public sector:
- Drafting policies, strategies and laws in the InsurTech sector, including in relation to regulatory sandboxes, innovation hubs and experimental clauses for new technologies.
- Advising on public contracts: administrative contracts, public tenders, pre-contractual proceedings
- Negotiating partnerships and memoranda of understanding with governments, institutions, agencies and the private sector
Our InsurTech Roadmap Product
The Digital Insurance Toolkit is a turnkey set of services that integrates several modules our clients can choose from in accordance with their needs.
- Testing Package
- Monitoring & Compliance Programme
- Data & Cybersecurity Programme
- Technology & IP Programme
- Consumer Protection & Liability Package
Our team of experts
The disruption of the Insurance ecosystem raises complex challenges that require a holistic and sophisticated legal analysis.
We help our clients meet their goals through a cross-sector team that brings lawyers from our ICT, Insurance and Data & Cybersecurity Practice Areas. In addition, to deal with the complex challenges brought by resorting to technologies in the sector, our team further works routinely with our colleagues from Banking & Finance, Tax, Public Procurement, Projects and IP, among others.
Why?
Specialised knowledge is required
The opportunities and challenges of the InsurTech sector, including those arising from the deployment of emerging technologies, are complex. Specialised knowledge is required for the development and deployment of digitalization strategies. VdA is especially knowledgeable of the opportunities and challenges brought by Fintech in Europe and in Africa.
VdA is well aware of the opportunities and challenges of the InsurTech sector in Europe, including those arising from the provision of insurance services in specialized sectors such as mobility, health and aerospace, and novel insurance products such as P2P micro-insurance or the use of AI and IoT technologies. VdA is closely accompanying the discussions, both at EU groups and initiatives, on these matters, such as the applicability of the Insurance Distribution Directive, the European Commission’s Digital Finance Strategy, and the work of the Expert Group on Digital Ethics set up by the European Insurance and Occupational Pensions Authority.
In addition, VdA has detailed know-how on the challenges brought by and to InsurTech services when it comes to data (personal and non-personal) and cybersecurity, including in light of the GDPR and the legal provisions and guidelines on cybersecurity, critical infrastructures / entities, IoT devices and data, including those that apply to sector-specific activities that are insured.
VdA has relevant know-how in advising Governments on the setup of legal frameworks for the Insurance sector, including for testing new products and services notably through innovation hubs, regulatory sandboxes and experimental clauses. VdA also advises companies in the deployment of InsurTech services, taking into consideration also other relevant legal and regulatory frameworks, including, for instance, on data economy, cybersecurity, Intellectual Property, tax, software licenses, hardware supply, consumer protection, among others.
InsurTech is set to play a relevant role in African countries as novel technological products and services are developed and require insurance, and technologies are integrated in the Insurance market.
For instance, the United Nations’ Economic Commission for Africa (ECA) has identified the importance of promoting digital finance services and specific financial technology startups in Africa, for which insurance may play a central role.
VdA has relevant experience in advising Governments on the setup of legal frameworks for the Insurance sector, including for testing new products and services notably through innovation hubs, regulatory sandboxes and experimental clauses.
VdA also advises companies in the deployment of InsurTech services, taking into consideration also other relevant legal and regulatory frameworks, including, for instance, on data economy, cybersecurity, Intellectual Property, tax, software licenses, hardware supply, consumer protection, among others.
When?
Can we do it for you
Assisting you in devising the best approach and models for your business, project, product and service, in the light of legal and regulatory opportunities and constraints.
Assisting you in the development and setting-up of your business, project, product and service, drafting all required documentation, assisting in the negotiation of contracts, interacting with competent authorities, and accompanying you every step of the way.
Assisting you in addressing day-to-day business goals and challenges in the light of the applicable laws and regulations. We are here for you.