Innovators are not only disrupting the financial industry but
also financial regulation as regulators weigh how to monitor
financial technology (fintech) innovators and their new products
and services. As they begin to address insurance
industry innovation, or "insurtech," U.S. insurance
regulators can benefit from the work of other countries'
financial regulators.
Overseas financial regulators have been examining how to balance
the needs for consumer protection and a sound financial system with
a climate that fosters innovation in financial services. For
example:
- In October 2014, the UK Financial Conduct Authority launched
its Project Innovate to help innovative businesses understand the
regulatory framework, and to review the UK's regulatory
framework to remove barriers to entry and encourage and support
innovation while continuing to protect consumers and the integrity
of the UK financial system. It subsequently launched its
Regulatory Sandbox as a safe space
