Page 7 - CU-20200201.pdf

MANAGING DIRECTOR, INSURANCE MEDIA GROUP Sandra Parente sandra@canadianunderwriter.ca 416-510-5114
EDITOR-IN-CHIEF
David Gambrill
david@canadianunderwriter.ca (416) 510-6793
MANAGING EDITOR
Adam Malik
adam@newcom.ca
ASSOCIATE EDITOR
Greg Meckbach
gmeckbach@canadianunderwriter.ca
ONLINE EDITOR
Jason Contant
jcontant@canadianunderwriter.ca ART DIRECTOR
Ellie Robinson
ADVERTISING AND MARKETING CONSULTANT
Pam Chodda Young
pam@newcom.ca (416) 510-5122
PRODUCTION MANAGER
Karen Samuels
CIRCULATION MANAGER
Mary Garufi
PRINT PRODUCTION MANAGER
Lilianna Kantor NEWCOM MEDIA INC.
CHAIRMAN AND FOUNDER
Jim Glionna
PRESIDENT
Joe Glionna
VICE PRESIDENT, PUBLISHING
Melissa Summerfield
CHIEF FINANCIAL OFFICER
Peter Fryters
DIRECTOR OF CIRCULATION
Pat Glionna
MEDIA INC.
5353 Dundas Street West, Suite 400, Toronto, Ontario M9B 6H8 Tel: (416) 614-2200 Fax: (416) 614-8861
Canadian Underwriter is published twelve times yearly by NEWCOM MEDIA INC.
All rights reserved. Printed in Canada. The contents of this publication may not be reproduced or transmitted in any form, either in part or in full, including photocopying and recording, with- out the written consent of the copyright owner. Nor may any part of this publication be stored in a retrieval system of any nature without prior written consent.
© Since 1934, Canadian Underwriter has been the voice of Canada’s insurance industry - a monthly magazine providing the highest quality and most relevant news and insight to insur- ance professionals from all segments of Canada’s property and casualty insurance market. The magazine is delivered on a direct-request circulation basis to nearly 15,000 senior decision makers nationally, including insurance brokers, risk managers, insurance and reinsurance com- pany personnel, claims managers and adjusters. Since its beginnings, Canadian Underwriter has been a link between all segments of the insurance industry, providing insurance profes- sionals with award-winning coverage of industry issues, trends, news, personalities and events - written by Canada’s leading insurance journalists.
Subscription Rates: 2018 Canada
1 Year $51.95 plus applicable taxes 2 Years $75.95 plus applicable taxes Single copies $10 plus applicable taxes, except $49 plus applicable taxes for July issue featuring annual Statistical Guide.
Elsewhere
1 Year $71.95
Subscription Inquiries/Customer Service
Mary Garufi (416) 614-5831
mary@newcom.ca
GST Registration number 890939689RT0001
Second Class Mail Registration Number: 08840
Publications Mail Agreement #40063170
Return undeliverable Canadian addresses to:
Circulation Dept.
Canadian Underwriter
5353 Dundas Street West, Suite 400, Toronto, Ontario M9B 6H8
Tel: (416) 614-2200
Time to regulate insurtechs
Ashort time ago, insurers feared insurtechs would disrupt the property and casualty industry.
By “disrupt,” people generally meant that insurtechs would compel traditional insurers to go digital, thereby dragging the industry kicking and screaming into the 21st century. In fact, the P&C industry has been adopting new technologies quite willingly and readily for some time.
No, the real threat to the industry is unfair competition brought about by the absence of insurtech regulation.
It’s pretty easy for a whiz-bang insurtech to design game-changing gadgets when nothing in the insurance regulations says they can’t. We’ve learned from the Uber example that when insurance regulators knock on the door, insurtechs can always say, “We’re a tech company,” while clearing their throats and pointing to the P&C insurers down the hall.
Canadian insurers have been more vocal lately about this tilted regulatory playing field. But the call for insurtechs to be regulated seems like a long-term strategy at best. If anyone thinks the insurance industry is slow to respond to things, they should take a look at the glacial speed of regulatory change.
In Canada, the feds are currently looking at insurtechs through the prism of ongoing “open banking” consultations, focusing on partnerships between banks and fintechs/insurtechs. The second consultation phase of that exer- cise is due to begin later this year.
Meanwhile, the International Association of Insurance Supervisors (IAIS) published a report in 2017 that examines the challenges for insurance regu- lators during multiple stages of market penetration by insurtechs. This is what the IAIS said about regulatory challenges if the status quo continues: “From a regulatory perspective, [insurance] supervisors will be more chal- lenged in keeping up with technological innovations. Their practices, as well as regulations, may be lagging. However, the lower market fragmentation [as exists today between insurers and insurtechs] may provide opportunities for joint learning in controlled regulatory environments.”
In other words, the regulators need to study it a bit longer.
Alas, while they study, what happens? Unregulated insurtechs do rings around the regulated insurance companies. In this case, regulatory inaction is effectively driving marketplace change. And that needs to change.
david@canadianunderwriter.ca
MEMBER
Facebook: canadianunderwriter
ISSN Print: 0008-525 ISSN Digital: 1923-34
Twitter: @Cdnunderwriter
canadianunderwriter.ca | February 2020 7
FROM THE EDITOR