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The Idea of Robotic Insurance Mediation in the Light of the European Union Law

  • Marta OstrowskaEmail author
  • Maciej Balcerowski
Chapter
Part of the AIDA Europe Research Series on Insurance Law and Regulation book series (ERSILR, volume 1)

Abstract

Rapidly developing insurance mediation market keeps intensifying the usage of modern technologies. These in turn enable the enjoyment of a variety of benefits such as easier contact with the client or profits maximization by increasing the efficiency of insurance mediator’s work. With this, modern solution called ‘robotic insurance mediation’ seems to be of particular interest. Its basic assumption is to minimize factual work of human beings within the process of client service.

This paper aims to discuss the existing possibilities of changing the activity of insurance intermediaries acting in the European market into more robotic taking into account the regulations of the IDD directive. Currently, some tentative attempts to introduce robotic mediation can be observed. Usually, they are focused on the so-called comparison websites. These in turn are based on relatively simple algorithms that compare the amount of insurance premiums. However, the said solution cannot be called robotic mediation sensu stricto. The comparison websites do not perform the activities that can be considered natural for ‘robotic insurance mediator’. Additionally, it is crucial to meet all the requirements resulting from the compulsory advisory or analysis of the insured’s needs as it is of particular importance in terms of preventing misselling practices or insurance brokerage activity.

With the above concerns, the analysis in particular focuses on whether the idea of robo-advisors complies with the requirements set out in the IDD directive and what are the potential obstacles in launching robo-advisors. As the nature of this paper is intended to be purely prospective, the authors attempt to present proposals for potential legislative improvements to facilitate the implementation of robotic insurance mediation.

References

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Legislative Instruments

  1. Commission Delegated Regulation (EU) 2017/2359 of 21 September 2017 supplementing Directive (EU) 2016/97 of the European Parliament and of the Council with regard to information requirements and conduct of business rules applicable to the distribution of insurance-based investment products (Text with EEA relevance) (OJ L 341, 20.12.2017, p. 8–18)Google Scholar
  2. Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (recast) Text with EEA relevance (OJ L 26, 2.2.2016, p. 19–59)Google Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.Insurance Law Institute, Faculty of Law and Administration, Warsaw UniversityWarsawPoland
  2. 2.U-Solutions UnderwritingWarsawPoland

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