The insurance industry is one of the most regulated in the world. Although it can be perceived as an obstacle to progress on many occasions, regulation is a key factor. When Technology, Insurance and Regulation come together, new possibilities and benefits are born for all the actors. Terms like Regulatory Sanbox or RegTech are here to stay.
We are in the midst of the transformation of financial services, and the insurance industry is no exception. Technology has been, and continues to be, its main enabler. Even more so after the impact of COVID-19, which is still unfolding.
The question is how can the insurance industry adapt in an agile and efficient way. The answer is unclear. What is certain is that the insurance industry is already opening up to the new possibilities offered by technology. In part, this means that it can connect with companies from totally different and complementary fields.
Innovation processes which traditionally were contained within companies, are progressively opening up to collaborations with other actors. However, on many occasions, after an entire innovation process, including its required investment the proposed solutions do not always meet the requirements of the regulators. This problematic has been met with the creation of Sandboxes, which have proliferated, led by public bodies in the financial or insurance sector, offering the opportunity to develop new proposals that are guaranteed to meet current and near-future regulations.