To promote the development of Insurtech in Hong Kong, the Insurance Authority (IA) launched two initiatives on 29 September 2017, “Insurtech Sandbox” and “Fast Track”.
Insurtech Sandbox aims to facilitate a pilot run of innovative Insurtech applications by authorized insurers in their business operations. Insurtech Sandbox allows authorized insurers to experiment with new Insurtech and other technology applications without the need to achieve full compliance with the IA’s usual regulatory requirements.
Under the Insurtech Sandbox, pilot trials of Insurtech applications can be conducted in a controlled environment, with sufficient safeguards for policyholders. It will help insurers gain real market data and collect user feedback before formally launching the Insurtech applications to the market.
Fast Track is a pilot scheme with a dedicated “queue” for new authorization applications from insurers using only digital distribution channels. Insurers making an authorization application under Fast Track will be able to have their application reviewed by the IA on an expedited basis.
To qualify for an application under Fast Track, the insurer must have an innovative and robust business model using digital distribution to benefit policyholders in product development, delivery, customer service and cost efficiency and must not accept businesses from non-digital distribution channels.
Fast Track could prove to be invaluable to insurers with an innovative business model where speed to market is imperative to its success.
The IA’s initiatives are a positive step towards the development of Insurtech in Hong Kong and should help to provide valuable data to the IA to refine its supervisory requirements.
For more information about the IA’s initiatives, please visit the Insurtech Corner on the IA’s website.