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ASF establishes InsurTech Hub to support technological innovation in insurance



Bucharest, April 19th, 2018 – The Financial Supervisory Authority decided to set up a working group - InsurTech Hub - the main purpose of which is to support technological innovation in insurance.

In order to support controlled development of technological innovation activities in the insurance market, which are becoming increasingly common worldwide, both EIOPA (European Insurance and Occupational Pensions Authority) and a number of national regulation and financial supervision authorities have set up FinTech / InsurTech dedicated teams (working groups). They are responsible for collecting information, developing skills and expertise, providing support to those interested in the various authorities' structures. Working groups are responsible for analyzing technological phenomena and their activities in areas such as cyber risks, Big Data, Internet of Thinks, Blockchain, telematics, use of robots for recommendations, artificial intelligence, etc.

"In order to support the insurance market so as to back the needs of alignment with the European trends in the implementation of technological innovations, as well as of the consumers, within ASF was set up the InsurTech Hub working group consisting of representatives of ASF, insurance companies, insurance intermediaries, interested IT companies, as well as representatives from insurance and IT associations," said Mr. Leonardo Badea, the ASF Chairman.

In his turn, the ASF Vice President, Mr. Cornel Coca Constantinescu, states that the main goal of the InsurTech Hub working group is to ensure the institutional framework of the collaboration between the parties involved in supporting the controlled development of the technological innovation activities in insurance (InsurTech), including by stimulating projects in the field. "InsurTech will also cover the RegTech area with the identification of efficient solutions for the use of technological innovations, being linked to EIOPA's strategy in the field," said the ASF Vice President.

According to the organization and operation regulation of the InsurTech Hub working group, approved by the ASF Board on April 17, 2018, its main objectives are:

- encouraging innovative technologies in favour of consumers, developing regulatory and supervisory means and developing the insurance market in line with developments in the field recorded by other European countries;

- monitoring innovative technological developments from the perspective of:

  • current and necessary regulations to be applied in the future,
  • the conduct of companies that promote such solutions,
  • entities using innovative technologies and solutions.

-  supporting innovative technological developments in a controlled manner and to the benefit of consumers, protecting their rights and interests from the perspective of digital identity, dematerialized assets they hold and personal data;

-  identifying cyber risks and proposing measures to manage them;

-  creating a testing and support framework for companies that develop innovative solutions to the benefit of consumers, so as to expand insurance penetration and increase service quality and reduce insurance costs by using digitization.

"InsurTech Hub will provide a platform for those who want to develop new insurance services and products centred on the interests of policyholders, be they insurance companies or brokers who have great innovative potential or start-up or Romanian technology companies. The Hub will provide the link with European initiatives in the field," said Mr. Călin Rangu, InsurTech Hub Coordinator and EIOPA InsurTech Task Force Vice-President.

In the globalized and digitized economy, technological innovation is a source of stability and economic growth with a focus on the interests of policyholders. The results of technological innovation, Big Data, Blockchain, Artificial Intelligence have the potential to significantly develop the financial sector, including insurance. Against this background, there are increasingly ambitious challenges for insurance companies, which need to adapt their business models to new technologies, but also for supervisory authorities, which need to ensure both a proper legislative and supervisory framework centred on the protection consumers and financial stability, allowing stakeholders, including policyholders, to properly capitalize the benefits of financial innovation.

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About ASF

ASF is the national authority, established in 2013 under GEO 93/2012 approved by Law 113/2013, for the regulation and supervision of insurance, private pensions and capital markets. ASF contributes to consolidating the integrated framework of operation of the three sectors, totaling over 10 million participants.

More information can be found on www.asfromania.ro.