INSURANCE INDUSTRY Moving Innovation from Concept to Precept October 2019 Prepared & Presented By: Cogneesol Inc. INTRODUCTION 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 industry. 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 services. 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. Customers 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 SANDBOX CONCEPT States like Wisconsin, Connecticut, and Illinois favor regulations stating they help provide guidance to the insurance innovators. While st