The new revolution in the world of insurance | Europe

a-Huge online invasion:

 Online insurance is becoming the new trend. This digital innovation like others is having a big impact on the market.

1-Online insurance at its highest speed:

The development of these online companies is at its highest speed. Although some insurers don’t believe this new innovation will affect them, the reality says something else. According to a survey from PwC earlier this year, almost half of insurance companies think they will lose 20 per cent of their business to standalone fintech companies over the next five years.

2-New forms and techniques

These digital insurers are invading our virtual life through many forms. Big companies are trying to combine some new smart technologies with the insurance procedure by creating online platforms which ensure efficient purchasing of insurance policies and loss adjustment proceedings, where necessary.

These innovators like Insutech companies created new techniques for  the monitoring of  clients' behavior to help in the development of new products; and also for  monitoring existing clients in order to improve risk management.

In light of this, the establishment of  partnerships  between insurers and technology companies is becoming the new trend.

This very fast invasion in the last few years caused a tsunami in the world of insurance that is traditionally known to be the world of written papers where a rigid approval and registration structure for products often stalls the development.

b-challenges:

No doubt Insurance, like any other domain has to follow the online trend and to be up to date…But some obstacles are to be watched out seriously in real life:

1-Insurance and complicated procedures:

Insurance is a mechanism that is created to protect from financial loss. This explains well the reason behind the very prudent and complicated procedure that covers the insurance policy, the insured undertakings remaining the core of any insurance deal. 

Nevertheless the offline law of insurance needs to be reformed or at least readapted to be suitable with the lighter and much less unsecured   procedures of  the online world. But this is not an easy step to be taken.

The commission is working on new proposals that aim to protect better the consumer’s right from one side and to help the businesses to extend better their business within Eu. 

2 -Insurance and national laws:

One of the main challenges that insurers face to sell their insurance products is the difference of rules that apply in cross-border sales within the EU. This problem prevent insurance businesses from fully benefiting from the Digital Single Market directive, the e-commerce. The European Commission is taking this reality in consideration  in her "Europe 2020"s  strategy for promoting sustainable economic growth throughout Europe and is working on rules to achieve a uniform insurance contract law.

More challenges are to be faced in order to provide a secure virtual environment against cyberattacks and other related risks. The more uniformity could be obtained throughout the European Union the better European consumers could possibly benefit from the best conditions for insurance business in the digital single market. 

Please contact A-Law International department on info@a-law.eu