EIOPA has published a report on current authorising and licensing approaches to financial innovation, including InsurTech startups and peer-to-peer insurance.
The report identified that while the EU market for InsurTech is in its early stages of development, it is evolving. It recommended that NCAs recognise the importance of harmonising supervisory practices in the area, given the cross border nature of companies operating InsurTech businesses.
Although EIOPA did not consider there was a need for further regulatory steps on licensing, it committed to work with NCAs and InsurTech firms to:
- explore options to develop a network of innovation facilitators for the benefit of NCAs and InsurTech firms
- assess what InsurTech-related data might need to be collected systematically to support NCAs and EIOPA work on InsurTech
- spearhead further work on understanding new technologies and different business models including the impact of InsurTech on traditional business models on insurance companies
- monitor of outsourcing and the developments in licencing InsurTech companies
- analyse the potential growth of the P2P insurance market