A Comparative Study of Automated Quantification in Digital Insurance

Abstract

Insurance companies have always been at the forefront of developments in the processing of large volumes of data. This paper investigates in a comparative perspective the implications of the increasing reliance by insurers on automated quantification, examining developments of insurance law and technology in continental Europe, the common law (particularly the United States), and mainland China. The paper sheds light on the challenges brought by automated quantification in digital insurance, reviews the regulatory options that may address such challenges and inquires into the regulatory approaches pursued in different regions of the world. The comparative analysis of the strategies pursued will show that, when thinking about regulatory options for digital insurance, it is important to keep in mind that the shift to automated quantification, although global, raises different risks and opportunities depending on the contexts and the legal frameworks in which it takes place. The variance of contexts and legal frameworks explains why the impact of automated quantification in insurance is for the time being strong in the common law world, present but less intrusive in China, and proceeding at an even slower pace in continental Europe.

Keywords: insurance, digitalization, comparative law, social quantification, automation, regulation

JEL Classification: K00, K01