Bareket is also raising for discussion matters of principle: How should the barriers be dealt with? To what extent do the easements in the document give a real response to overcoming the existing barriers regarding investments in insuretech ventures? Are there additional steps that can help?
What are the current barriers that need to be dealt with in connection with investments in insuretech? This is the main question which Insurance Commissioner Dr Moshe Bareket is posing for the insurance and pension sector. Within the framework of a consultative paper, aimed at raising discussion on the manner of granting easements for investment in insuretech ventures, Bareket says: “As part of the Authority’s activity in promoting technological and digital innovation in the insurance sectors, the Authority regards the development and encouragement of ventures in the insuretech sector as being of great importance. The development and encouragement of insuretech ventures is expected to bring added values to the insurance market, increase competition in it, improve the supply of products and service to the customer, enhance the interface and feedback in the distribution chain, strengthen controls and documentation and improve efficiency by means of automation of processes and business innovation”.
For the purpose of promoting ventures in this sector, the Authority is seeking to uncover barriers creating difficulties for investment by insurance companies in insurtech ventures and investment by the companies in insuretech infrastructures. These barriers, says Bareket, could derive from the capital requirements imposed on the companies.
Bareket suggest a number of possible easements, within the framework of the consultation paper. For example, allowing the classification of a held company engaged in insuretech as a strategic company and reduce the capital requirements accordingly, or other capital easement models.
Bareket also raises for discussion a number of matters of principle, such as: what are the existing barriers that need to be dealt with within the framework of the current regulation? How is it suggested that these barriers be dealt with? To what extent do the easements in the document give a real response to overcoming the existing barriers regarding investments in insuretech ventures? Are there additional steps, regulatory and others that can assist in developing the Israeli insuretch industry?
Declaration of intentions
Bareket’s intention of assisting the insurance sector in developing the insuretech sector comes as no surprise. Only a month ago, at the Kasirer Institute’s annual seminar, Bareket gave a declaration in this spirit that the Authority intends taking steps to incentivize the industry to invest in the insuretech sector. The previous Commissioner, Dorit Salinger, also tried to point the market in more digital directions, within the framework of the digital vision that was published three years ago, which also included suggested tax reliefs.