RegTech and Insurance Sector: An Opportunity to Explore

Abstract

In a rapidly evolving turbulent business world of today, compliance with regulations is critical to maintain the integrity of one’s operations and stakeholders’ trust. Simultaneously it has become very complex for companies, specifically those operating in finance, healthcare, and other such sectors, to keep up with these regulatory changes and ensure adherence to complex compliance standards. The financial services industry in general and insurance industry in particular is highly regulated to ensure transparency and protect customer interest. Consequently, an emerging paradigm namely Regtech, combining regulatory compliance and technology is a game changer for insurance companies. Regtech solutions enable companies to adhere to multiple complex regulations effectively, streamline compliance processes, lessen costs and mitigate the risks associated with non-compliance, ultimately fostering a more compliant, efficient, and competitive business environment. However, to ensure effective implementation of Regtech solutions in insurance, certain concerns over data security and privacy need to be addressed and fruitful collaboration between regulators and Regtech companies is a prerequisite. In this article an attempt has been made to explore the strategic significance of Regtech solutions and their applications in insurance industry. Further certain prerequisites have been suggested to ensure its effective implementation.