The international association of insurance supervisors (IAIS) has set out its priority for2021. In preparing the strategic roadmap, the IAIS identified a wide range of factors that are likely to impact insurance and insurance supervision in a substantive way in the coming years such as the speed at which markets are evolving, the role of fintech in insurance business and supervision and emerging risks such as cyber crime, climate change and the challenge of sustainable development.
According to the supervisory body, fintech presents significant opportunities for financial inclusion and policy holder value but also presents operational and underwriting risks. Big data and artificial intelligence in particular have the potential to disrupt the insurance market given the underwriting decisions of insurers. The IAIS says it will achieve its set agenda by enhancing surveillance and promoting strong supervision through the creation of peer-to-peer platforms for supervisory exchange on good practices among its members.