This report provides an in-depth analysis of the current uptake of regtech solutions in insurance and examines in what direction the industry is moving. It analyzes the scale of the market in terms of growth in deals and uncovers the key players across different compliance aspects. The report provides an overview of the technology trends facilitating regtech solutions as well as major regulation further influencing developments in the regtech space, which coupled together have the potential to disrupt traditional business models in insurance.
Regtech is making its way into insurance. Regulation governing financial services providers has expanded substantially since the outbreak of the global economic crisis of 2008. Keeping pace with changes has become extremely burdensome to financial institutions and insurers alike, while the cost of complying with such requirements has hiked.
Regtech can improve data management capabilities and provide insurers with increased automation and data-driven insights in areas such as reporting, regulatory compliance, and financial risk management. In the past few years, investments in regtech startups have been on the rise, reaching a record high in 2018. Insurers are waking up to the potential benefits of regtech, triggering an increase in the number of partnerships. Despite the hype, regtech is still in its infancy and its potential remains untapped.
- 2018 was the largest ever year of investment in regtech, with deals attracting $4.5bn globally and more than doubling in value over the course of the year.
- New legislation coupled with exhaustive regulatory scrutiny are squeezing the insurance compliance function, prompting insurers to turn to regtech providers to mitigate risks.
- Regtechs are specializing by distinct domains, with a large proportion focusing on identity management - particularly aspects of know your customer and anti-money laundering.
Reasons To Buy
- Understand the competitive landscape and to what extent insurers have adopted regtech.
- Understand the key trends in regtech in insurance and the factors driving growth.
- Benchmark your company against the rest of the market.
- Ensure you remain competitive as new innovations and technologies are introduced.
- Identify new ways to monitor regulatory compliance and mitigate risks.