Meital Raviv, Director and Head of Fintech and Innovation at
KPMG Israel, has written the following article about how to
recognize and minimize risks while—as businesses today must
do—flying forward with innovation.
The insurance industry is in the midst of unprecedented change.
Changing customer dynamics, rapidly evolving technologies, and the
growing ability to distinguish customers at granular levels are
shifting the foundation of how insurance services are developed,
priced, and offered.
As innovation opportunities proliferate, however, insurance
companies cannot forget their regulatory and compliance
responsibilities. For instance, AI and machine learning
applications in insurance markets could reduce the degree of moral
hazard and adverse selection—but could also undermine the
risk pooling function of insurance. In order to help avoid
compliance challenges and financial penalties, insurers need to
consider their regulatory risks upfront and incorporate
