Regulatory Sandbox and InsurTech: A Preliminary Survey in Selected Countries
18 Pages Posted: 26 Nov 2018
Date Written: October 10, 2018
This paper examines regulatory sandboxes in the UK, Singapore and Australia. We find that there is relatively a lower number of applications of the so-called insurTech firms for regulatory sandbox, comparing with application of fintech in other financial sectors. This paper argues that, while technology does bring a lot of innovation to the insurance sector, it has not really challenge the existing framework by challenging the meaning of insurance or providing non-insurance risk management tools. Instead, most applications seem to be about refining and improving existing insurance products, the selling of insurance policies, and back-office operations (e.g. processing applications, information disclosure, or claim processing, etc.). However, regulatory sandbox may still be useful for firms offering specialised products or services where existing regulations might provide a hindrance for early development.
Keywords: fintech, financial technology, financial regulation, insurance, insurtech
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