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