EIOPA is consulting on how the continued evolution of technology is affecting business models and bringing beneficial innovation and a new set of risks that need to be taken into account.
Firms are increasingly relying on third parties with a view to transforming how products are delivered to customers, but this may create new conduct and operational risks, or create or amplify existing risks, as well as creating legal and compliance issues especially around outsourcing and data protection. There is also the increased concentration risk if many undertakings rely on a small number of popular providers.
EIOPA is concerned that this could mean a fragmentation of the insurance value chain, including a potential for reduced regulatory and supervisory “grip” on the relevant activities. It welcomes views, by 7 September, on the possible fragmentation risks.