Concept to Precept
Prepared & Presented By: Cogneesol Inc.
Evey business witnesses innovation at one point or the other
owing to the changing customer demands or the need for
enhanced product quality.
The insurance industry is no different as new concepts are being
introduced due to the innovation and use of the latest technology
and the lifestyle changes of the customers.
So, let’s get started and figure out how the changing times are
paving the way for innovation and regulations in the insurance
Insurers need to innovate with respect to the competition in the
market but there are times when they are forced to bring out a
change due to the demand of regulatory organizations.
A number of such organizations witness the changing lifestyles of
the customers and the need for refined insurance products and
This is quite the opposite of how we define innovation. but with
regulatory bodies making the change a must, insurers are left
with no other option but to innovate.
Driving the Real Change
The National Association of Insurance Commissioners (NAIC)
formed an Innovation and Technology (EX) Task Force to assess
new developments in InsurTech, along with educating and
informing the regulators.
Innovation & Regulation!
What’s the Opportunity Scope?
IN DECEMBER 2017
In December 2017, a new model was presented by the
American Insurance Association to the National Association of
Insurance Commissioners, which stated creating a regulatory
sandbox that could eliminate the fear of violating regulations
while testing new digital innovations.
Insurers need to keep compliance with the sandbox
regulations when trying to innovate new products and
services for the customers so that the innovations do not fall
outside the changing customer needs.
The Sandbox Concept
States like Wisconsin, Connecticut, and Illinois favor regulations
stating they help provide guidance to the insurance innovators.