Upcoming workshop: technology in insurance regulation
The TECHNGI project at Loughborough University on artificial intelligence and data technologies in insurance is running workshops next month on the global revolution in regulatory reporting and its implications for the insurance industry. There is still opportunity to join these workshops, beginning Monday May 17th, see invitation document for details.
Registration details are at the bottom of this article. There are four workshops addressing different aspects of regulation and technology, detailed below.
A global regulatory revolution: at the starting blocks
Central to the ongoing wave of innovation in financial services are applications of fintech in regulation and supervision (“regtech”,”suptech”). Regulators world-wide are accepting the need for employing technology to contain compliance costs of current regulation and while obtaining the necessary transparency of financial activities for effective oversight.
These efforts have acquired real momentum in the past year. The UK is leading with the BoE/ FCA digital regulatory reporting initiative: their 2020 consultation paper ‘Transforming data collection from the UK financial sector’ and 2021 road map ‘Transforming data collection from the UK financial sector: a plan for 2021 and beyond’. The European Banking Authority has recently launched a consultation on integrated reporting based on digital technologies. Regtech and suptech are also of central interest to the European Insurance regulator (see EIOPA (2020) Supervisory Technology Strategy). In the US the FDIC launched last year a technology competition “FDIC Launches Competition to Modernize Bank Financial Reporting”.
This new direction of travel is summarised in recent papers from the Bank for International Settlements (FSI insights on policy implementation no 29) and the Financial Stability Board (The Use of Supervisory and Regulatory Technology).
We will explore the opportunities for insurance in a series of four virtual workshops in May and June 2021. These will examine the challenges and application of technology in
- KYC requirements and AML/ sanctions compliance (Monday, May 17th)
- Conduct risk and client/ customer protection (Monday, May 24th)
- Data sharing and data protection (Tuesday, June 1st)
- Capital adequacy and solvency (Monday, June 7th
All workshops will run from 14.00-15.30 BST and take place on MS Teams.
Outcome of the workshops
A first output will be short workshop summaries, highlighting key points of our discussion and circulated only to workshop participants.
A second output will be a published report, targeted at senior management, examining opportunities in these four areas and addressing shared challenges such as:
- standards and governance, ensuring industry wide agreement on both underlying data and organisational compliance (“kite marking”).
- ensuring coherence of regulatory compliance with business processes, in e.g. building reporting into the architecture of business processes
- the design, codification and communication of rules and regulations (in forms that do not limit efficient automated compliance)
Benefits of attending
- Understanding the forthcoming radical changes in regulation and compliance, e.g.:
Defining and adopting common data and business process standards (a shared foundation for automated regulation); and
Modernising reporting instructions and reporting (consistent across domains, sectors and jurisdictions; integrated with firm’s own business and operational systems).
- An opportunity to have your voice heard, in what will be an early example of the industry dialogues that will shape the future of insurance regulation.
- Highlighting (in the final report) the opportunities and challenges at C-suite level.
Registration of interest
To register interest in joining these focus group meetings, please provide your contact details in the below form. Applications should be submitted by Friday 30th April, and we aim to confirm attendance by 4th May.