Technological innovations are revolutionizing the way operators and consumers relate to each other.
ASF plays an active role in the digital ecosystem, balancing benefits and risks for the consumer and the market, within a balanced regulatory framework that enables a high level of consumer protection to be provided without creating unnecessary barriers to innovation.
Technological change in the financial area (Fintech), applied to insurance (Insurtech), occurs at various points in the business chain, be it in risk assessment and insurance contracting, in claims management and combating fraud or in savings management. It is increasingly possible to measure risks, generate quotes and issue tailormade policies. This possibility is linked to the growing availability and processing of information, largely resulting from the use of sensors that allow, in real time, access to essential data for decision-making. The incorporation of the internet in cars, mobile devices that register biometric signals and homes (Internet of Things), has enabled risk monitoring that, combined with greater communication with the customer, mainly through applications for smartphones, helps to increase protection and risk mitigation. This trend is marked in motor, health and multi-risk home insurance and is mainly revealed in the offer of new services associated with insurance.
The new digital technologies are also the basis for new types of products, such as so-called on-demand insurance, in which the customer turns on and off the coverage according to needs. This is the case, for example, with a new drone insurance, which can be activated when the object is going to fly, via a mobile phone application.
All this transformation is a sign of creativity and the strategic bets of operators show their ability to adapt, admitting disruptive decisions in relation to their current business model.
It also poses great challenges to the Financial Regulation and Supervision Authorities. They must ensure a stable, solid and transparent market that fosters innovation, while at the same time creating conditions for consumer protection.
To this end, a culture of cooperation and dialogue between the different stakeholders and constructive collaboration with national financial supervisory authorities and European institutions is particularly relevant.
In this sense, the ASF is present in various initiatives, organisations and events, in order to follow the evolution of the technological reality in the financial area in general and, specifically, in the field of insurance and pension funds.