PriyaPatel
TLDR:
- Insurtech companies are reshaping the future of the insurance market through innovation in technology.
- Regulated insurers, brokers, and agents must focus on vendor risk management and compliance when working with Insurtech companies.
In the rapidly evolving insurance market, it is not just about the technology when it comes to being an Insurtech company. Insurtech companies, from AI to Big Data, are reshaping the future of the insurance market through innovation in technology. However, regulated insurers, brokers, and agents need to focus on more than just the technology bit when working with Insurtech companies.
Vendor risk management is a critical aspect that companies must consider when engaging with third-party suppliers, including Insurtech companies. Poor vendor risk management can lead to fines, reputational damage, and regulatory or legal action. Regulated firms must ensure that their third-party suppliers meet certain criteria regarding financial security, ESG compliance, cybersecurity controls, and GDPR compliance.
Insurtech companies need to address regulatory requirements and demonstrate an understanding of the regulated insurance market to establish trust and credibility with potential clients. By focusing on compliance, Insurtech companies can accelerate the onboarding process, reduce legal and contracting risks, and add long-term value to their business.
