Regulation on FinTech must be future-proof - Insurance Europe
Source: Asia Insurance Review | Jul 2017
Insurance Europe has advised the European Commission to ensure that regulation on FinTech is future-proof and supportive of innovation that benefits consumers.
In its response to the Commission’s consultation on “FinTech: a more competitive and innovative European financial sector”, Insurance Europe said it believes that the best way to support digital innovation at EU level is to ensure that the existing regulatory framework is digital-friendly, technologically neutral and sufficient future-proof. It notes that member states have already adopted national approaches to provide regulatory tools and dialogues for innovative products and services. A more consistent approach at EU level would therefore contribute to the creation of a real digital single insurance market in the longer term.
The European Commission had seek a public consultation to help further develop its policy approach towards technological innovation in financial services. The feedback will help the Commission to gauge how FinTech can make the EU Single Market for financial services more competitive, inclusive and efficient.
Not to impede growth or stifle innovative technology
Insurance Europe said that care should be taken not to impede growth or stifle the use of innovative technologies through regulation that is obstructive or that quickly becomes out-of-date, that regulation must be technology neutral and activity-based to ensure that consumers are effectively and equally protected regardless of the service provider.
Insurance Europe also welcomed the fact that the Commission is seeking views on how best to support digital innovation and seems ready to address unjustified obstacles to it.
Given the speed of digital innovation currently taking place, Insurance Europe also highlighted the importance of cybersecurity, and called attention to the need for businesses to implement the right cybersecurity measures. A