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InsurTech is composed of the words “insurance” and “technology”. It is used as a collective term for the application of modern technologies in the domain of insurance services.
Digital and mobile brokers: FinTechs belonging to this category mostly act as digital insurance brokers and provide users with an overview of their insurance contracts with their respective conditions. Some FinTechs offer very short-term insurance contracts to cover specific cases which can be concluded often spontaneously via mobile devices. Oftentimes additional consulting services are offered.
Internet of things: FinTechs belonging to this category collect data by measuring for example the driving style of the customers or through wearables the customers wear to consult on, offer and/or manage the customer’s insurances.
Introduction
Attitude of the country towards InsurTech-services
The insurance industry is subject to heavy regulation and solvency requirements which are directly linked to the risks that each firm has chosen to take on. Consumer protection lies at the heart of insurance regulation. The Central Bank updated its Consumer Protection Code, enhancing consumer protection measures, but has not yet addressed concerns that could arise from widespread adoption of InsurTech by insurers and intermediaries.
At this point, InsurTech firms have to work within a regulatory framework which was designed by reference to the business models and activities of more traditional insurers. The market potential for increased adoption of InsurTech is clear but the regulatory regime has yet to catch up.
Legal affairs
Obligations and requirements to provide InsurTech-services
No data available.
Additional comments regarding the legal situation for InsurTech-services or what InsurTech’s must be aware of in this business area
N/A.
Economic conditions
Market size for InsurTech-services and biggest companies in this business area
The InsurTech sector is believed to be growing at the rate of 41% each year globally.
Ireland has a cluster of over 30 InsurTech companies as well as more than 200 fintech companies and is recognised throughout the world for its ability to bring leading-edge solutions to customers.
In October 2020, Munich Re announced the investment of €16m in its Dublin-based InsurTech project. Also notable was the Ardonagh Group's announcement (July 2021) that it will open a global data and risk management centre in Ireland. In addition to boosting employment, InsurTech successes in Ireland also contribute to the development of the wider eco-system which can help more firms in this space to develop and thrive.
Additional comments regarding the economic situation for InsurTech-services or what InsurTech’s must be aware of in this business area
Ireland has a strong life insurance and life reinsurance sector. To maintain this position and to further develop the sector, it has been acknowledged that more collaboration with InsurTech is needed. A greater engagement with InsurTech will enable Ireland to promote a community of government, financial and technology enterprises driven by a common set of purposes around themes such as health and wellness, integration of insurance into the digital ecosystem, and big data.
The current joint FSI/II IFS Insurance Working Group aims to place a greater focus on InsurTech as a key area for exploration, including personalised consumer engagement models to promote health and wellness, with a view to bringing concrete suggestions to the Joint Committee.
It has been stated in the Ireland for Finance 2025 action plan that InsurTech proposals will be presented to the Joint Committee.