Future Insurer #20 - Christmas Special!

Welcome to ??Future Insurer #20 - Christmas Special! ??

Before diving into the final Future Insurer of the year, I would like to thank each of you for your support! Every read, like and share is appreciated. Wishing all of you a peaceful and joyful Christmas and New Year.??

And now without further ado, here are some of the most interesting #insurtech and #insurance developments from the past fortnight, as well as some crystal ball gazing on the outlook for 2024.

If you're new here, welcome?? Make sure to hit subscribe! The next edition will be in January.

In this edition's news:

??? Artificial Intelligence legislation one step closer

Provisional agreement on the Artificial Intelligence Act in the European Union has been reached . The agreed text will now have to be formally adopted by both Parliament and Council to become law. Safeguards include classification of AI systems by risk, bans on social scoring and limits placed on the use of biometric identification systems. It will be interesting to see how other jurisdictions respond.

?? Advice is about to get personal

Following a review into the Quality of Advice in Australia, the Australian Government will allow banks and insurers to give personal advice under a simplified regulatory regime through a new category of financial adviser. This is a major shake-up of the current regime that generally results in banks and insurers providing general advice only. Personal advice can take into account a person's financial situation, objectives and needs. Looking forward to the draft legislation for this which will no doubt be subject to consultation.

??Hiscox to use AI after teaming up with Google

In a first for the London market, Hiscox has teamed up with Google to use an AI underwriting model for specialist risks. A risk can be underwritten in a matter of minutes rather than days. Hiscox intends to use the model from mid 2024 onwards. The model can review a broker's email request, decide whether the risk falls within appetite, and prepare the response to the broker for an Underwriter to approve before sending it out. High tech!

??Howden Ventures invests in Risk Management Company

Following its launch in October, Howden Ventures has made an investment into Rosetta Risk Management (RRM). RRM is currently a SaaS platform, but under the Howden umbrella it will transform into an MGA. RRM uses real-time data from construction projects, including details on building materials, construction techniques, and project timelines, to provide an enhanced underwriting approach.

Looking ahead??

It's InsurTech prediction season again and I'm sure you have seen others' predictions of what 2024 might hold already. I also took out my crystal ball and gazed...here is what I think I saw:

1. Sustained interest in investment in MGAs, embedded insurance offerings and InsurTechs managing climate related risks
2. Increasing regulation around AI, insurance pricing and product governance/distribution
3. Focus on insurers to design products that deliver consumer value and discussion around what that 'value' looks like
4. Continued development of open finance infrastructure

What do you think?

Subscribe to receive a copy of this newsletter whenever it's published.

Tim Chan is an insurance & insurtech lawyer at global law firm Norton Rose Fulbright and Founder of The InsurTech Lawyer blog.?He regularly advises insurers and startups on emerging legal issues affecting the industry. Follow Tim on Twitter: @timinsydney

Disclaimer: This newsletter provides general information only and does not constitute legal, financial or other professional advice. It does not address the circumstances of any particular individual or entity. You should seek your own professional advice.