Digitalisation – An Increasing Feature Of Insurance Regulation

Digitalisation and broader innovation themes are growing features in the insurance sector. This is seen across the entire insurance 'value chain'.

It ranges from firms dealing with customers through digital channels, often with no direct human interaction, through to back-end activities with a heavy reliance on technology. Many insurers and intermediaries also have complex outsourcing and cloud dimensions.

Regulatory approach

The Central Bank of Ireland, EIOPA, the European Commission, and the European Parliament have been active in seeking to understand the benefits and risks of technology and to regulate accordingly.

EIOPA's Report on Digitalisation of European Insurance Sector (April 2024) highlighted the variation in approaches to digital across the EU while recognising the increased use of technology. It notes, for example, that the use of chatbots is expected to rise significantly. A lack of IT skills and understanding within firms is also identified.