The insurance sector plays an important role in assessing and pricing risk and providing incentives and advice to individuals, households and businesses to support risk management and risk reduction. New data sources, analytical tools such as artificial intelligence, and policyholder engagement platforms provide the insurance sector with additional tools to enhance their contribution to risk reduction.
The policy, regulatory and supervisory framework applicable to insurance activities can provide an enabling environment for technology adoption by the insurance sector. It can also ensure that the potential risks for consumer that could arise from the use of new data sources and analytical tools (such as unfair discrimination, privacy breaches and/or financial exclusion) are properly managed and mitigated.
