Regulators have been criticised for not keeping up with the pace of change in data and technology advancements facing insurers.
That is the opinion of one expert panellist who will speak at InsuranceERM's Insurance Risk & Capital EMEA 2023 conference, which will take place in London on 4 December.
The panellist told InsuranceERM: "While regulation is critical for the efficient and proper organisation of the market... the regulators across Europe, particularly in the UK, are massively understaffed and underfunded".
This results in "clunky one-size-fits-all regulation," which does not fit anybody, argued the panellist.
"Unfortunately, the world that we are living in is going far more tech-enabled, but far more bifurcated in that the tech is allowing individual entities and individual markets to operate at a much faster speed than they ever did before, and regulators have not kept up".
Another panellist called for insurance regulation on data to tackle systemic risk, particularly as many insurers rely on third parties and a larger data ecosystem that they cannot control.
As such, the panellist told InsuranceERM they welcomed the overall direction of the proposed EU Data Act, which intends to standardise rules on data usage, and was adopted by the European Parliament on 9 November 2023.The trade body Insurance Europe has also largely praised this regulation but said more needs to be done on in-vehicle data.
Other topics on data that will be discussed in the panel session include how insurers can sharpen the due diligence process, emerging data risks, and the key trends and developments shaping the future of data access.
To register for the Insurance Risk & Capital EMEA event and view the agenda, please click here.