InsurTech4Good Weekly Newsletter – Week 2, 2025

Introduction

Dear readers,

Bravo! There are already more than 3,500 of you!

Starting now, I plan to publish this newsletter weekly, every Monday morning.

This change will make the content more timely and relevant, though some editions may be slightly shorter. I’d love to hear your thoughts on this change!

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I’m also happy to announce that InsurTech4Good.com now has its own dedicated LinkedIn page. I warmly invite you to follow it here, as I’ll be sharing relevant regulatory and policy news there daily.

Best,

Andres

News and reports

Solvency II review and InsurTech

The Solvency II review is now published in the Official Journal of the EU!

The comprehensive review of the prudential framework aims to enhance the insurance sector’s resilience to future crises, strengthen policyholder protection, and simplify rules.

This is also important for all InsurTech companies that are risk carriers.

Given the technological neutrality of EU insurance legislation, it is not relevant how digitized a company is or which technology it is using; only the nature of the products or services offered and the risks taken by the undertaking are relevant.

Hence, all InsurTech risk carriers should be aware of the recent Solvency II review.

The work now continues in Level II and Level III, led by EIOPA, to reflect the changes introduced to the framework.

There are several public consultations ongoing, including one on standard formula capital requirements for investments in Crypto Assets (see public consultation section at the end of this newsletter).

Read more here.

Policy Development and Implementation Guide for Inclusive Open Finance

This just published note offers a comprehensive framework for policymakers and regulators to design and implement inclusive data-sharing ecosystems.

These could range from open banking and open finance to broader open data regimes tailored to specific contexts.

The guide covers key considerations for every policy aspect, including governance, technical standards, implementation, and monitoring.

It is grounded in guiding principles such as inclusivity, consumer empowerment, and collaboration.

To advance financial inclusion for underserved groups—such as women and rural populations—it emphasizes a collaborative, consumer-centric approach to policy development.

This approach fosters trust, competition, and innovation.

Read more here.

Tokenisation of assets and distributed ledger technologies in financial markets

Distributed ledger technologies (DLTs) could become a transformative feature of financial markets, impacting both financial products and the underlying market infrastructure.

The tokenization of assets—defined as the digital representation of real assets on distributed ledgers (digital twins) or the issuance of traditional asset classes in tokenized form (native tokens), excluding crypto-assets—is a key aspect of this technology's revolutionary potential, as highlighted by the OECD.

The potential proliferation of DLTs and tokenization in financial markets could significantly affect core activities such as the trading, pricing, and liquidity of securities, as well as processes like clearing and settlement.

It could also impact related activities, such as securities lending and borrowing markets.

Market participants and policymakers have shown strong interest in DLT-based financial applications, including tokenization.

However, despite growing enthusiasm among market participants and the emergence of a clearer distinction between crypto-assets and regulated tokenized assets, the adoption of tokenization remains limited.

This report analyzes possible reasons for the lack of a thriving market for tokenized assets and offers policy considerations for financial supervisors and policymakers.

Although insurance is not explicitly mentioned in the report, the topic is highly relevant to the insurance sector. Tokens can represent any asset, including insurance policies and the underlying assets that are insured.

Read more here.

Ongoing fires in Southern California and insurance

The ongoing fires in Southern California are expected to result in an insured loss that will rank it as one of the most expensive for the wildfire peril on record for the insurance industry.

These events highlight the growing challenges insurers face in accurately assessing and pricing wildfire risks, particularly as climate change increases the frequency and severity of such disasters.

There are no easy answers for how to mitigate the effects of these disasters.

While this is not directly an innovation story, it probably underscores the need for the industry to adopt advanced risk assessment tools and some innovative thinking from the regulatory and public policy side as well.

Read more here.

Microinsurance Country Diagnostic Studies

This document outlines the analytical framework and methodology for conducting a microinsurance country diagnostic study.

It is designed to assist readers who wish to gain a deeper understanding of the development of microinsurance markets, as well as researchers, consultants, insurance practitioners, policy-makers regulators and supervisors tasked with the analysis of a national insurance market with a view to developing strategies and recommendations for the growth of microinsurance.

Read more here.

IIF – EY Annual Survey Report on AI/ML Use in Financial Services

The annual IIF-EY AI/ML Survey on financial institutions' use of AI/ML highlights the widespread adoption of the technology, strong governance and oversight practices, and increasing investment.

All survey respondents reported increased investment in AI/ML in 2024, with 50% indicating an increase of more than 25%.

This report examines the impact of AI/ML practices in financial institutions, focusing on five key areas:

1.   AI Development, applications, and use cases
2.   Regulatory and supervisory engagement
3.   AI/ML Governance and Oversight
4.   Use of third-party models
5.   Generative AI

Read more here.

InsurTech events and public consultations

Want to reach 3,500+ industry experts and decision-makers?

If you are a policymaker or supervisor, feel free to contact me by replying to this e-mail to add your event to this section free of charge.

For other interested parties who wish to feature their events such as webinars and conferences here, please request a price quote by replying to this e-mail.

Note that I reserve the right to select only events that provide value to readers and align with my values.

IAIS Public consultation on draft Application Paper on the supervision of artificial intelligence

The IAIS is consulting on its draft Application Paper on the supervision of artificial intelligence. Comments due by Monday, 17 February 2025 24:00 CET.

Read more here.

EIOPA consultation on technical advice on standard formula capital requirements for investments in crypto assets in insurance

EIOPA invites stakeholders to provide their feedback on the Consultation Paper by responding to the questions via the online survey no later than 16 January 2025.

Read more here.

Thank you!

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