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largest institutional investors globally, with US$40 At the moment, this is not always the case. In
trillion of assets under management. many jurisdictions, regulation is still too tailored to
the characteristics of the banking industry, which
Moreover, in today’s fast-paced digital world, insurers in practice means that it is not fit to cater to the
embrace innovative technological solutions, thereby unique features of the insurance business model.
facilitating digital transition, enhancing efficiency, In addition, insurers’ use of and access to data is
and fostering financial inclusion for consumers. The under increasing scrutiny in some jurisdictions,
industry is, for example, steadily adopting AI tools notably the EU.
for various uses, such as climate risk prevention
and mitigation, fraud detection and for enhancing By recognising the unique features of insurance,
the customer experience. Indeed, the insurers’ the sector’s fundamental societal role and added
ability to innovate helps them to continuously value in addressing existing and emerging risks,
develop new products to address emerging risks in regulatory frameworks, policymakers can create
and vulnerabilities. the right regulatory conditions for insurers to carry
out their important function. This necessitates less
For insurers to play their role as both providers of regulatory burden, promotion of long-term and
protection and institutional investors, fit-for-purpose sustainable investing and ensuring that consumers
and future-proof regulatory frameworks are of have access to insurance products. Furthermore,
paramount importance. Such frameworks should regulatory frameworks should not inhibit insurers
recognise the real economics of the insurance from using data. Use of and, primarily, access to,
business and real needs of customers. That means data is fundamental to the provision of insurance
that they must be tailored to the specifics of insurance services, so that insurers are able to assess the
rather than putting insurance products in the same overall risks and make sure that future claims are
basket as other types of financial products. But being paid. This is key for the sustainability of the
they also need to fit today’s digital world and reflect business model and the ability of insurers to provide
more broadly the evolving demands of consumers. security and protection.