Supervisory Technologies in Insurance

Supervisory technologies involve the use of data and analytics by regulatory authorities as part of their supervision of regulated firms. It's often referred to as 'SupTech'.

The implications of supervisory technologies for insurance are immense. They enable regulators to...

  • gather granular data about products, prices and the decisions that shape them
  • track patterns in insurer outputs and compare them with consumer outcomes. 
  • analyse that data in real time for signs of misconduct 
  • predict misconduct situations as they start to emerge 
  • move from annual and occasional checks to real time monitoring 

Insurers often are surprised by the advent of Supervisory Technologies. Their experience of the regulator is often more prosaic. Yet they know that the regulator is asking them for more data, more often. SupTech is why.

Consider why regulators are forging ahead with SupTech. Their political masters do not want a repeat of the 'sifting through the debris' situation that regulators found themselves in after the 2008 financial crisis.

Quote | 2019

We have the resources and expertise to pick inside those insurance models.”

The words of Chris Woolard, interim CEO of the UK's Financial Conduct Authority, during hearings on insurance pricing before the Treasury Committee, in February 2019.  

Evidence 

The UK's Financial Conduct Authority has been using SupTech to...

  • identify networks of potentially collusive behaviour;
  • predict the probability and location of an adviser mis-selling financial products;
  • to identify potentially misleading advertisements

Article | 5 min read

Why Supervisory Technologies will Revolutionise Insurance

This article gives you a good overview of how influential SupTech could be for insurance markets. 

 

Quote | 2018

SupTech could have significant organisational impact and may raise unchartered legal and ethical issues

Financial Stability Institute report : "Innovative Technology in Financial Supervision"

Consulting

I provide insurers with insight into the implications of emerging trends around data and analytics in insurance. This is independent advice, free of parallel interests. The perspective is that of building trust in a digitised market.

I'm part of the debate on the future of insurance, and clients draw on that foresight to help shape their own long term plans.

My input to client projects is a rich blend of market knowledge and academic thoroughness. This is about highlighting connections and consequences for your people to weigh up in relation to the firm's digital strategy.

Recent clients:

  • a European Government 
  • a large European insurer  

Contact me for an informal chat.

Original Research  |  2015

Digital Panopticon and the new power of data
Review : really carefully thought through, well-written and prescient

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