Featured Product

    IAIS Publishes Draft Paper on Use of Big Data Analytics in Insurance

    September 02, 2019

    IAIS is seeking feedback on the draft Issues Paper on the use of big data analytics in insurance. The paper focuses on the use of algorithms and advanced analytics capabilities by insurers to make decisions based on patterns, trends, and linkages and examines the availability of new alternative data sources (collectively referred to as big data analytics) to insurers. The paper builds on the IAIS Issues Paper (published in November 2018) on the increasing digitalization in insurance and the potential impact of this digitalization on consumer outcomes by focusing more on issues related to the use of personal and other data by insurers. Feedback on this consultative document is invited by October 16, 2019.

    To help understand the potential benefits and risks to consumers associated with the use of big data analytics by insurers, the paper considers the manner in which insurers are now able to collect, process, and use data across various stages of the insurance product lifecycle, namely product design, marketing, sales and distribution, pricing and underwriting, and claims handling. The paper also makes certain observations about the potential implications of the use of big data analytics in insurance, for supervisors. Furthermore, in light of the outcomes for the fair treatment of customers described in the Insurance Core Principles (ICPs) 18 and 19, this paper makes certain observations about the potential implications for supervisors as a result of the use of big data analytics in insurance.

    The paper observes that the increased availability of data and enhanced processing capabilities now accessible to insurers can result in a number of benefits. On the other hand, the paper also highlights that the complexity and opacity of algorithm technology and the ability of insurers to customize product offerings to an individual level could potentially result in risks to individual customers as well as to the insurance sector, for which supervisors may need to devise appropriate responses. Additionally, the paper suggests that supervisors think about whether there is a need to enhance governance, oversight, and third-party risk management requirements specific to the use of algorithms for big data analytics purposes. 

     

    Comment Due Date: October 16, 2019

    Keywords: International, Insurance, BDA, Big Data, ICPs, Suptech, Insurtech, IAIS

    Related Articles
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    EIOPA Consults on Reporting and Disclosures Under Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.

    July 21, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7293