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InsurTech

What is InsurTech?

The term ‘InsurTech’ currently has no legal definition. In general, the term refers to all new technologies used in the area of insurance; however, there is no consistency among the service providers

Across all development stages of insurance products, there are numerous ways for technologies to be used for example, in tailor-made insurance products, websites comparing prices of similar products of several insurance companies, telematics, etc.

The use of technologies in insurance is constantly developing and technologies have lately been applied mainly in insurance product distribution and management, i.e. they are mainly used for insurance intermediation. The technologies include applications searching for insurance products according to parameters predefined by customers, Internet portals comparing similar insurance products of various insurance companies, as well as applications used in underwriting which set the price of insurance directly for individual customers, and also including insurance contract intermediation via the Internet without personal meetings with customers.

In all the above-mentioned examples of technology utilisation, the firm which has developed the software for insurance contracts underwriting is not responsible for the insurance contract or intermediation of insurance, and this firm is neither regulated nor licensed or supervised by Národná banka Slovenska, except if this firm uses the systems itself to distribute insurance products, or if it is a financial institution authorised to provide insurance or reinsurance services. Moreover, Národná banka Slovenska does not supervise firms providing telematics, i.e. equipment for processing of data used by insurance companies to set the insurance price in compulsory contractual motor vehicle third party liability insurance and motor vehicle insurance.

Whenever insurance contracts are underwritten, including their underwriting using any technologies and electronic applications, it is necessary that the intermediaries arranging insurance contracts on behalf of insurance companies are registered in the Register of financial agents and financial advisers of Národná banka Slovenska, and that the insurance company with which a customer concludes a contract is allowed to provide services in Slovakia based on a license or through a branch from another EU Member State, or under the freedom to provide services from another Member State of the European Union.

Contents« Back to FinTech

  • I. Legislation

Contact form of the NBS Innovation Hub

Documents of international standardization institutions

European Supervisory Authorities

Date Name
03/03/2020 EIOPA EU-US Insurance Dialogue Project Big Data Working Group
06/02/2020 EIOPA Guidelines on outsourcing to cloud service providers
18/07/2019 EBA publishes Report on regulatory perimeter, regulatory status and authorisation approaches in relation to FinTech activities
05/2019 EIOPA Big Data Analytics in motor and health insurance: A thematic review
05/2019 EIOPA Big Data Analytics in motor and health insurance: fact sheet
03/2019 Report on Outsourcing to the Cloud: EIOPA's Contribution to the European Commission Fintech Action Plan
03/2019 Report on Best Practises on Licencing Requirements, Peer-to-Peer Insurance and the Principle of Proportionality in an InsurTech Context
03/2018 Joint Committee Final Report on Big Data
03/2018 Use of Big Data by financial institutions
08/03/2018 EC: FinTech action plan: For a more competitive and innovative European financial sector
23/01/2018 EBA Joint ESAs Opinion on the use of innovative solutions in the customer due diligence processes
07/2017 EIOPA InsurTech Roundtable How technology and data are reshaping the insurance landscape
04/12/2015 EBA Discussion Paper on automation in financial advice

International Financial Market Regulation Organizations

Date Name
19/03/2020 IAIS Issues Paper on Use of Big Data Analytics in Insurance
30/01/2020 BIS Policy responses to fintech: a cross-country overview
14/02/2019 FSB FinTech and market structure in financial services: Market developments and potential financial stability implications
12/11/2018 IAIS Issues Paper on Increasing Digitalisation in Insurance and its Potential Impact on Consumer Outcomes
12/08/2018 IAIS Application Paper on the Use of Digital Technology in Inclusive Insurance
08/12/2017 IOSCO Research Report on Financial Technologies (Fintech)
27/06/2017 FSB Financial Stability Implications from FinTech Supervisory and Regulatory Issues that Merit Authorities’ Attention
13/03/2017 IAIS FinTech Developments in the Insurance Industry