One of the most exciting parts of my role as REIN’s General Counsel is engaging and collaborating with policymakers and regulators to identify efficient and scalable ways to introduce innovative insurance programs to the market. A couple of days ago, I was in Silicon Valley to attend Plug and Play’s annual “Insurtech: Bridge the Gap” summit, put on in partnership with the National Association of Insurance Commissioners (NAIC). With a ton of breakthroughs happening across the insurance industry, here are a few critical insights from this year’s discussions:
1.Talk to your regulators.
One resounding message from the summit: regulators are open and eager to collaborate with the insurance industry. All stakeholders are aware of the rapid evolution that’s taking the insurance space by storm. Insurtechs need to take it upon themselves to engage with regulators about new business models and how existing laws and regulations apply to these new models. Outreach events like Plug and Play’s Bridge the Gap summit, where regulators from 7 states were in attendance to arrange one-on-one meetings with representatives from leading insurtechs, are helping to lead the charge. Open discussion platforms like this are crucial in nurturing a robust and collaborative innovation environment — we’re thrilled to be a part of it.
2. The insurance regulatory landscape can empower innovation.
At the end of the day, it’s all about meeting the constantly evolving needs of consumers. Regulators are largely receptive to new ideas and products that are strategically designed to protect and benefit consumers. Insurtechs can work with regulators to champion a change in the law or regulatory framework if said change is in the best interest of the consumer. For example, increasing numbers of states are offering or considering regulatory sandboxes to explore new technologies in a controlled environment, enabling data-driven experimentation and innovative ideas.
3. Insurance is definitely going digital. But how?
It’s no longer a gray area: the insurance industry is exploring and implementing new digital models powered by technology and data. The challenge is setting up a scalable and repeatable infrastructure that can empower this digital shift — both from a technical and a regulatory standpoint. Insurtechs need to start by understanding existing regulations and how new technology fits within, or challenges, those regulations. This way, insurtechs can work closely with regulators to ensure innovation is done the right way.
Technology teams focused on insurance innovation sit at the apex of a systemic paradigm shift. It’s an exciting time, and we look forward to what’s ahead! If you’re interested in learning more about REIN and how we can shape the future of insurance together, reach out to us at firstname.lastname@example.org or visit REIN.ai