Data is often the key ingredient to an insurtech's success.
From the use of drone data to automatically pay insurance claims
after a hurricane, to AI that can predict the likelihood of
insurance fraud – big data has the potential to revolutionize
the insurance industry. But before an insurtech can harness its
data models to underwrite insurance more effectively, it oftentimes
must first must obtain regulatory approval to do so.
For many lines of insurance, the rates an insurtech may charge
its policyholders must be filed with and approved by the insurance
regulator of the state in which the insurtech wants to offer its
policy. Regulators will want to understand and need to approve the
data models used to charge different policyholders different rates.
Many of our clients find this rate filing process to be opaque and
worry that obtaining prior regulatory approval will significantly
hinder their speed to market.
