SEPTEMBER INSURTECH NEWSLETTER
Welcome!
For those who are new and don’t know me, I’m Andres, founder of InsurTech For Good, a consultancy providing analysis, regulatory, and policy advice to InsurTech companies, insurers, and regulators worldwide.
With 15 years of experience in insurance and digital finance regulation and supervision at the national, European, and global levels, my career has taken me from Estonia—one of the most digitally advanced countries in the world—to roles in European and global insurance watchdogs.
I curate this newsletter to deliver the latest insights on InsurTech regulations, policies, and business models, covering everything from AI to Open Insurance in the EU and beyond. My passion is staying ahead of emerging trends and helping others do the same.
I believe that sharing these insights can contribute directly or indirectly to better consumer outcomes, ultimately increasing innovation and trust in the insurance industry.
I have been curating this newsletter for quite some time on LinkedIn. This is the first edition here on the new domain.
I thank all of you who have signed up. Its already more than 3000 of you. I clearly feel the responsibility and promise to continue curating it thoughtfully, keeping both regulators/policymakers and industry/innovators in mind.
In the medium term, I'll continue duplicating the newsletter on LinkedIn as well, but my goal is to eventually transition fully to this new domain.
🔁 If you think your colleagues would also benefit from this newsletter, please share it within your network.
💬 If you have views on these topics, ideas for improving the newsletter, or think I can help you in other ways, please let me know!
Thank you!
Fueling Innovation: Closing Fintech Funding Gaps
With more than $350 billion of venture capital (VC) funding invested since 2015, FinTech has become an industry with global net revenue exceeding $150 billion in 2023 and is expected to grow to $400 billion by 2028.
Obtaining VC funding, however, remains a challenge for many FinTech companies across regions.
This white paper examines where FinTech funding gaps exist across regions and outlines strategies to bridge them, aiming to help build a more robust FinTech ecosystem.
The white paper highlights five key pathways (first one is I think really interesting!):
1. Investing in digital public infrastructure
2. Enhancing regulatory clarity
3. Nurturing talent
4. Developing local financing capacity
5. Encouraging sustainable FinTech growth strategies
I think first one is especially interesting. Digital public infrastructure is classified across four core building blocks in this paper: identity, payments, data sharing and other emerging technologies (such as artificial intelligence models).
Unlocking the potential of open banking is separately highlighted referring to the PSD3 and FIDA proposals in the EU.
And for me this is important. If we look APIs and standards as public infrastructure we might also re-think how we approach it from public policy perspective (including funding etc.). Interesting to think further.
P.S. The report excludes InsurTech but at least these 5 recommendations are equally applicable to insurance sector.
Read more here.
Regulatory approaches to Artificial Intelligence in finance
Policy approaches to Artificial Intelligence in finance, based on the results of a survey of 49 OECD and non-OECD jurisdictions.
This just published report provides information on current and potential use cases of AI in finance and some of the risks observed by survey respondents.
It also provides a stocktake of the policy frameworks applicable to the use of AI in finance in different forms.
The report concludes with a discussion on the possible future need to ensure that applicable frameworks remain fit for purpose and the importance of broader guidance.
Great international overview for all who are into AI and insurance/finance.
Read more here.
Frequently Asked Questions about the Data Act
The Data Act is a European Union regulation aimed at facilitating and promoting the exchange and use of data within the EU.
It will make more data available for use and establish rules on who can use and access specific data for various purposes across all economic sectors in the EU.
The Commission has just published detailed Questions and Answers on the Data Act.
Read more here.
AI guidelines
The Qatar Central Bank has just issued AI guidelines to boost innovation, efficiency, and transparency in financial institutions.
Read more here.
Digital Twins and insurance
Do you know what digital-twin technology is and why it could be important for the insurance industry?
McKinsey defines it as a digital replica of a physical object, person, system, or process, contextualized in a digital version of its environment.
Digital twins can help many kinds of organizations simulate real situations and their outcomes, ultimately allowing them to make better decisions.
In the insurance industry, the ability to anticipate scenarios and carry out simulations is super-important.
Digital-twin technology might help to simulate extreme events. This might enable insurers to predict the outcomes of these events and mitigate impacts.
Responsible Digital Finance Ecosystem (RDFE)
This paper presents a conceptual framework for achieving a Responsible Digital Finance Ecosystem (RDFE).
In this ecosystem, key stakeholders collaborate to proactively identify, prevent, and mitigate consumer risks.
The framework includes a wide range of actors—financial sector authorities, digital financial services providers (including insurers), consumer representatives, and market facilitators.
Together, they should work to protect consumers from potential harm and ensure that digital financial services enhance their lives.
It outlines four key components of an RDFE:
1. Customer centricity: Effectively placing customers at the center of actors' actions.
2. Collaboration: Working together effectively to create, plan, fund, implement, and monitor solutions.
3. Capability: Effectively addressing consumer risks via enhanced competencies, tools, and resources.
4. Commitment: Individually and collectively dedicating internal resources to champion an RDFE.
Read more here.
Data Equity
Do you know what data equity is?
This report offers a definition of data equity and presents a framework for inquiry that encourages ongoing dialogue and continuous action towards implementing data equity in organizations.
This framework serves as a dynamic tool for stakeholders committed to operationalizing data equity across various sectors and regions, especially given the rapidly evolving data and technology landscapes.
The paper includes two case studies that are particularly interesting for finance and insurance: one on climate data collection and another on monitoring women’s access to financial services in emerging markets.
Read more here.
Advancing AI across insurance
How can insurance firms adopt AI effectively and unlock its full potential?
There has been a lot of reading around this topic recently. Here is another view from KPMG.
Read more here.
Practical guide to the EU Data Governance Act
The Data Governance Act (DGA) is a pillar of the European strategy for data.
It aims to increase voluntary data sharing for the benefit of businesses and citizens by making it easier to share data in a trusted and secure manner.
Together with the other measures under the data strategy, the DGA will help unlock the full potential of data.
The guidance document is an in-depth guide to help stakeholders understand the provisions and reap the benefits of the DGA.
It is intended to help industry and Member States, and any other interested stakeholders to better understand the various measures established under the DGA.
Read more here.
Digital Platform Ecosystems in Insurance
Three roles that insurers can play in digital platform ecosystems.
1. Orchestrator – The insurer builds its own proprietary digital platform ecosystem.
2. Partner – The insurer participates in an existing, third-party digital platform ecosystem.
3. Co-developer – The insurer co-develops a digital platform ecosystem with a third party, i.e. a role in between orchestrator and partner.
To better understand how insurers are using digital platform ecosystems, the Geneva Association conducted a survey of its member companies.
The responses reveal that over 80% of insurers are already working with tech companies to build a digital insurance platform.
Read more here.
Generative Artificial Intelligence in the Financial Services Space
This paper explores potential use cases and challenges that financial institutions should consider when integrating AI technologies into their operations.
It also outlines various approaches to facilitating the adoption of GenAI, with a focus on practical guidance, industry collaboration, and capacity building.
Well-written paper and highly recommended for both supervisors and insurance innovators to read.
Read more here.
Regulatory Airports in the FinTech policy discussion
New term in FinTech policy discussions—namely, Regulatory Airports.
Some highlights from the paper:
1. Regulatory airports can help link FinTech with more real-world commercial opportunities than sandboxes.
2. While facilitating financial and strategic opportunities for FinTech startups, they also enable regulation.
3. Many successful global FinTech hubs, such as New York, Singapore, and the UAE, follow the regulatory airport model.
And finally, one idea that is close to my heart:
"Excessive risk aversion under the guise of consumer protection can prevent markets from job creation, competitiveness, and future readiness."
Read more here.
Member discussion