InsurTech: A Legal and Regulatory View (eBook)

Pierpaolo Marano, Kyriaki Noussia (Herausgeber)

eBook Download: PDF

2019 | 1st ed. 2020
VI, 401 Seiten
Springer International Publishing (Verlag)
978-3-030-27386-6 (ISBN)

Infos

This Volume of the AIDA Europe Research Series on Insurance Law and Regulation explores the key trends in InsurTech and the potential legal and regulatory issues that accompany them. There is a proliferation of ideas and concepts within InsurTech that will fundamentally change the market in the next few years. These innovations have the potential to change the way the insurance industry works and alter the relationships between customers and insurers, resulting in insurance products that are more closely aligned to individual preferences and priced more appropriately to the risk. Increasing use of technology in the insurance sector is having both a disruptive and transformative impact on areas including product development, distribution, modelling, underwriting and claims and administration practice. The result is a new industry, known as InsurTech. But while the insurance market looks to technology for greater efficiency, regulators are beginning to raise concerns about managing potential risks.

The first part of the book examines technological innovations relevant for insurance, such as FinTech, InsurTech, Sharing Economy, and the Internet of Things. The second part then gathers contributions on insurance contract law in a digitalized world, while the third part focuses on cyber insurance and robots. Last but not least, the fourth part of the book discusses legal and ethical questions regarding autonomous vehicles and transportation, including the shipping industry, as well as their impact on the insurance sector and civil liability. Written by legal scholars and practitioners, the book offers international, comparative and European perspectives.

The Chapters 'FinTech, InsurTech and the Regulators' by Viktoria Chatzara, 'Smart Contracts in Insurance. A Law and Futurology Perspective' by Angelo Borselli and 'Room for Compulsory Product Liability Insurance in the European Union for Smart Robots?' by Aysegul Bugra are available open access under a CC BY 4.0 license at link.springer.com.

Inhalt

Contents 6
Part I: Technological Innovations and Insurance 8
FinTech, InsurTech, and the Regulators 9
1 Introduction 9
2 International Regulatory Cooperation 11
2.1 The Financial Stability Board´s Approach 12
2.2 OECD´s Involvement with FinTech and InsurTech 14
2.3 The View of the International Association of Insurance Supervisors 16
3 Activities on the EU Level 18
3.1 The European Commission´s Approach 19
3.2 The European Supervisory Authorities´ Actions 21
EIOPA´s Take on InsurTech 21
ESMA´s Input on the FinTech Problematic 23
EBA´s Activity in Relation to the FinTech Phenomenon 23
4 Activities on National Level 24
4.1 The United Kingdom example 24
4.2 The Swedish example 25
4.3 The Hong Kong example 25
4.4 The Singapore example 26
5 Summary and Conclusions 27
References 29
Insurance in Today´s Sharing Economy: New Challenges Ahead or a Return to the Origins of Insurance? 32
1 Introduction 32
2 Insurance in the Peer-to-Peer Economy 33
3 New Business Models in the Insurance Sector 37
3.1 The Broker Model 37
3.2 The Carrier Model 39
3.3 The Self-governing Model 40
4 A Closer Look at Friendsurance 41
4.1 Contracts Concluded with the Website´s Visitors 41
4.2 Services Provided by Alecto GmbH and by Megara GmbH 41
4.3 The Claims-Free Cashback 43
4.4 The Inosculation of P2P Elements onto a B2C Model 45
5 Discussion: The Model Put Forward by Teambrella 46
6 Conclusions 50
References 51
The Internet of Things and Insurance 53
1 Introduction: The ``Internet of Things´´ Phenomenon 53
1.1 What Is the Internet of Things? 53
1.2 Size Considerations 55
1.3 IoT Key Features and Components 55
1.4 Technology and Other Challenges to IoT Penetration 56
1.5 Data: A Particular Challenge 57
1.6 IoT and Insurance 59
2 IoT-Driven Evolution of the Insurance Value Chain 60
2.1 General Remarks 60
2.2 Product Design 60
2.3 Sales and Distribution 62
2.4 Underwriting and Pricing 63
2.5 After-Sales Service and Claims Management 65
3 IoT and Insurance Risk 69
3.1 What Kinds of Risks Are There? 72
3.2 Where Does the Risk Lie? 73
3.3 Consequences for the Insurance Industry 74
4 Effects on the Civil Liability Model 77
5 Summary and Conclusions 82
References 83
The Challenges for Regulation and Control in an Environment of Rapid Technological Innovations 86
1 Introduction 86
2 Technological Innovations in Insurance and Related Regulation 87
3 Behavioral Insights 93
4 Controls vs Technological Innovation 96
5 Uniformity of Regulations vs Technological Innovation 97
6 Conclusions 98
References 100
Part II: Insurance Contracts in a Digitalized World 102
Smart Contracts in Insurance: A Law and Futurology Perspective 103
1 Introduction 103
2 The Technical Functioning of Smart Contracts 105
3 Near-term Applications of Smart Contracts to Insurance 107
4 The Prospect of Truly Smart Contracts 112
5 Conclusion 123
References 124
Digitalisation of Insurance Contract Law: Preliminary Thoughts with Special Regard to Insurer´s Duty to Advise 128
1 Introduction 128
2 Examples of New Insurance Products 129
3 Reforms of Insurance Contract Law 130
4 Major Instances of `Personalisation´ in Insurance Law 131
4.1 The Insurance Applicant´s Duty to Disclose 131
4.2 Personalised Duties to Warn and Advise 132
5 The Evolution to the Duty to Advise with Particular Regard to Online Distribution 134
5.1 Directive 2002/92/EC on Insurance Mediation 134
5.2 IMD and Digitalisation of Insurance 135
5.3 The Example of German Law 136
5.4 Principles of European Insurance Contract Law 138
5.5 Insurance Distribution Directive 140
The Regulatory Approach of Insurance Distribution Directive 141
Pre-Contractual Exploration and Warning 143
Advice Provision and Competing Business Models 144
Preliminary Assessment of IDD with View to Digitalisation 144
6 Conclusion 145
References 146
New Technologies and Issues with Insurance Contracts in Japan 148
1 Introduction 149
2 AI, Robots, Drones, and Cryptocurrency 149
2.1 Background 149
2.2 Autonomous Vehicles 150
The Structure of Automobile Liability Insurance for Bodily Injury and Death in Japan 150
Japan´s Effort to Develop a Legal System for Autonomous Vehicles 151
Electronic Persons and Autonomous Vehicles 154
Subrogation 154
New Insurance Products 155
Other AI, Robots, Drones, and Cryptocurrency 155
3 Measurement of Dynamic Risk 157
3.1 Background 157
3.2 Impacts on Automobile Insurance from Telematics 158
3.3 Impacts on Medical Insurance from Wearable Devices 159
4 Fusion of Things and Bodies 160
4.1 Background 160
4.2 Impacts from Prosthesis 160
4.3 Impacts from Fusion of Things and Bodies 161
5 Threats from Cyber Risk 162
6 Conclusions 162
References 163
Part III: Cyber Insurance, Robots 165
Room for Compulsory Product Liability Insurance in the European Union for Smart Robots? Reflections on the Compelling Challeng... 166
1 Background of the EU Initiative on Civil Law Rules on Robotics 166
2 Challenges on Definition and Demarcation 169
2.1 Smart Robots as `Product´ 171
3 Checks and Balances of the Scheme Proposed: Control of `Moral Hazard´ 173
3.1 Functions of Compulsory Insurance and the Analogy Between Compulsory Motor Liability and Compulsory Product Liability Insu... 173
3.2 Connection Between Strict Liability and Compulsory Insurance 177
3.3 The `Development Risk´ Defence 179
3.4 Deductibles 182
3.5 Precautionary Measures 184
4 Potential Limits to the Protection of Third Parties in the Insurance Framework 186
4.1 Lack of a Right of Direct Action Against Insurers 186
4.2 Lack of a Right of Direct Action Against the Compensation Fund 188
4.3 Claims-Made and Claims-Occurring Policies 190
5 Conclusion 192
References 192
Books 192
Book Chapters 193
Articles 193
Working Papers 194
Reports 194
Legislative Instruments and Soft Law Materials 195
The Idea of Robotic Insurance Mediation in the Light of the European Union Law 197
1 Introduction: Insurance Intermediation in the Approaching Realm of Digitalization 197
2 The Idea of Robo-Advisor 199
2.1 Notion of Robo-Advisor 199
2.2 The Benefits To Be Reaped of Robo-Advisors 200
2.3 Risks Related to Robo-Advisors 200
3 The IDD Directive: Digital-Friendly or Technologically Negative? 201
4 Concerns and Regulatory Challenges 203
4.1 Professional Requirements and Conduct of Business Rules 203
4.2 Automated Advice and Assessment of Suitability and Appropriateness 203
4.3 The Liability for the Insurance Distribution Performed by Robo-Advisor 204
5 Conclusions 206
References 207
Legislative Instruments 208
Cyber Risks: Three Basic Structural Issues to Resolve 209
1 Introduction 209
2 Range of Cyber Risks or What´s Included/What´s Excluded 210
3 Scope of Existing Coverage 212
3.1 Overview of Existing Coverage 213
3.2 The CGL Policy 214
3.3 Specialty Policies, Endorsements, and Cyber Risk Exclusions 217
4 Everything Old Is New Again 218
4.1 Coverage for Cyber Risks Found 219
4.2 Coverage for Cyber Risks Denied 221
5 Fixing It All 222
5.1 Resort to Cyber Security Firms 222
5.2 Consolidation of Cyber Perils 223
5.3 Risk Rating Mechanisms 224
6 Conclusion 225
References 226
Cybersecurity and Environmental Impact: Insurance as a Better Protection Mechanism for Liability from Incidents in Oil and Gas... 229
1 Introduction 229
2 The Deep Water Horizon and the Saudi Aramco Incidents: The Facts in a Nutshell 230
3 The Environmental (Marine and Oil) Pollution Liability Legal Regime and Its Impact on Insurance Schemes 232
4 The Environmental Pollution Insurance Regime and the Structure of the (Offshore) Energy Insurance Market 236
5 Initiatives Taken and Regulatory Approaches 237
6 Cybersecurity Implications for the Energy Sector 241
7 Writing Cyber Liability Insurance Coverage 242
8 Conclusions 243
References 246
Part IV: Autonomous Vehicles and Transportation 248
Autonomous Vehicles: Legal Considerations and Dilemmas 249
1 Introduction 249
2 Distribution of Liability 251
2.1 Civil Liability, Negligence and Product Liability 251
2.2 Autonomous Vehicles and Liability 251
2.3 Limitations of and Gaps in the Current Legal Framework 253
2.4 Existing Risks: Shift in Liability 254
2.5 Product Liability Directive and Motor Insurance Directive 254
3 Ethical Considerations: An Overview 256
4 Cyber Security and Big Data Issues 257
4.1 Fair and Lawful Processing 258
5 Insurance Issues 259
5.1 New Risks Relating to Software Failure 262
Risks Relating to Software Failure 263
Risks Relating to Network Failure 263
Hacking and Cybercrime 264
Programming Choice 264
6 Conclusions 265
References 266
Will Autonomous Cars Put an End to the Traditional Third Party Liability Insurance Coverage? 267
1 Introduction 267
2 Background Information 268
2.1 Changing the Classic Concept of the ``Driver´´ to Embrace the Autonomous Reality 268
2.2 Evolution of Vehicle Automation 271
2.3 Countries That Already Have Addressed the Autonomous Cars Subject in Their Legislation 273
3 Future Predictions: What Has Already Been Said and What Can Be Expected to Occur? 278
4 How Can Insurance Industry Adapt Itself to the New Reality? 281
5 Conclusions 283
References 285
Legislative Instruments 286
Ethical Issues, Cybersecurity and Automated Vehicles 287
1 Definition of Automation 287
2 Information Processing and Automation 290
3 Self Learning 294
4 Positive Impact of Automation 296
5 Ethical Issues and Data Protection 297
6 ENISA´S Study on Information Security 301
7 Conclusion 303
References 307
A New Era, a New Risk! ``A Study on the Impact of the Developments of New Technologies in the Shipping Industry and Marine Ins... 309
1 Introduction 309
2 Meaning and Scope of the Term ``Cyber Attack´´ 311
3 Digitalisation of Shipping Industry 315
3.1 The Status quo of Autonomous and Unmanned Ships 316
International Law 316
National Law Approaches 319
4 Seaworthiness 322
5 Cyber Risks 327
5.1 Cyber Risk Assessment/Management 327
6 The Insurability of Liabilities Arising from Collision 330
7 Protection and Indemnity (PandI) Cover 333
8 Conclusion 334
References 335
Probing Civil Liability Insurance for Unmanned/Autonomous Merchant Ships 339
1 Introduction 339
2 The Ship´s Liability and Civil Liability Insurance 341
2.1 The Ship´s Expanding Liabilities 341
2.2 Marine Insurances for a Ship´s Civil Liability 342
2.3 Other Insurances Covering a Ship´s Liability 343
3 The Unmanned/Autonomous Merchant Ship 344
3.1 Definition and Classification 344
3.2 Seaworthiness and Legality 346
Seaworthiness 347
Legality 348
Changes and New Risks 350
4 Insurance for Unmanned/Autonomous Merchant Ships 351
4.1 Who Is Eligible to Be the Insured? 352
4.2 Who Insures the Ship? 354
4.3 Certain Non-marine Insurances 355
5 Conclusion 356
References 356
Smooth Sailing or a Risky Expedition: A Critical Exploration into the Innovation of Unmanned Maritime Vehicles and Its Potenti... 358
1 Introduction 358
2 Background 359
2.1 Definition of Unmanned Maritime Vehicles 359
2.2 The Need for Autonomous Vessels 360
2.3 What Is the Current State of Autonomous Vessels? 361
Yara Birkeland 361
The MUNIN Project 361
The Rolls Royce ``AAWA´´ Project 362
2.4 Are Unmanned Vessels Legally Considered As Ships? 363
Definition of `Ship´ in International Conventions 363
Definition of Ship in National Laws 365
3 Potential Impacts of Autonomous Vessels 365
3.1 The Potential Benefits of Autonomous Vessels 365
3.2 Disadvantages of Autonomous Vessels 368
4 The Interrelation of Autonomous Vessels and International Maritime Law 370
4.1 Will Autonomous Vessels Be Able to Satisfy the Requirement of a Genuine Link to the Flag State? 370
4.2 Duties of the Flag State-Would They Still Be Applicable to Autonomous Vessels? 371
4.3 Training of Seafarers 373
5 Insurance Law Considerations for Autonomous Vessels 374
5.1 Overview 374
The Definition or Interpretation Section 374
The Risks 374
The Premium 375
Liability 376
Claims 378
5.2 Standard Form Charter-Parties and Their Application to Autonomous Vessels from an Insurance Law Perspective 379
The GENCON 94 379
NYPE 93 and NYPE 15 381
6 National Marine Insurance Laws and Their Ability to Accommodate Autonomous Vessels 385
6.1 The UK´s Marine Insurance Act 1906 385
Are Unmanned Vessels Covered by the Marine Insurance Act 1906? 386
Are Risks Associated with Autonomous Vessels Covered by the MIA 1906? 386
Applicability of Masters´ and Seamen´s Wages Under the MIA 1906 to Autonomous Vessels 387
Measure of Insurable Value and Autonomous Vessels Under the MIA 1906 387
Applicability of Deviation Clauses Under the MIA 1906 to Autonomous Vessels 388
Applicability of Signature on Policy Clause Under the MIA 1906 to Autonomous Vessels 389
6.2 The Nordic Marine Insurance Plan 2013 Version 2016 389
The Insurable Value 390
Perils Insured Against 390
7 Conclusion 392
References 393
Table of Legislation 393
International Conventions 393
Commissioned Papers 394
Books, Journal Articles, Thesis 394
Websites 395

Produkt-Details

• Erscheint lt. Verlag: 5.12.2019
• Reihe/Serie: AIDA Europe Research Series on Insurance Law and Regulation
• Reihe/Serie: AIDA Europe Research Series on Insurance Law and Regulation
• Zusatzinfo: VI, 401 p. 2 illus.
• Sprache: englisch
• Themenwelt: Recht / Steuern ► EU / Internationales Recht
• Themenwelt: Recht / Steuern ► Wirtschaftsrecht
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management
• Schlagworte: Aida • Artificial Intelligence • Autonomous Vehicles • Big Data • Blockchain technology • civil liability • Cloud Computing • Financial Services • FinTech • Insurance Contract Law • insurance law • Insurance Market • Insurance products • insurance regulation • Insurtech • International Association of Insurance Law • internet of things • Sharing Economy • Smart Cars • Smart Contracts
• ISBN-10: 3-030-27386-5 / 3030273865
• ISBN-13: 978-3-030-27386-6 / 9783030273866