The LRRP working group has led the writing and publication of an IDF proprietary report on the use of InsurTech technology to close the Protection Gap, and changes needed in regulatory and enabling environments to accommodate this innovation. The report is the product of contributions from over 15 organisations including members of the Inclusive Insurance working group and received significant support from international law firm, Clyde & Co.
This paper discusses how technology and innovation can be powerful tools in building more resilient communities. This is true across the insurance marketplace, but there are some particularly exciting opportunities for progress at the micro-level. Technology can extend the reach of insurers, it can enable better product design, more accurate pricing of risk, it can reduce distribution costs, increase the speed and ease of claims settlements, assist in fraud detection, among other benefits. But, as discussed in this paper, technology is but a tool, which can and should be used in the difficult job of addressing the insurance needs of those greatly in need of greater protection and support from the insurance sector. It does not obviate the need for continued investment in customer education and financial literacy, research on market specific consumer needs, building regulatory capacity and establishing trusted working relationships among all insurance sector stakeholders.
26th August, 2020