Introduction

Attitude of the country towards InsurTech-services

• The insurance sector is regulated by the Short-Term Social Security Supervisory Authority (ASSCSP) and others.
• Insurance companies face strict rules on capital, product approval, and consumer protection.
• Innovation is slow, with agents and brokers still dominant.

• Some insurers are adopting mobile apps, digital policies, and online claims.
• Fully digital InsurTech startups are still rare and usually partner with traditional insurers.

• No specific regulations for InsurTech yet.
• Innovations must follow existing insurance laws on risk, solvency, and consumer protection.
• Regulators support financial inclusion, creating chances for microinsurance and parametric insurance via digital platforms.

• Insurance penetration is low (around 1–2% of GDP).
• Limited awareness and affordability reduce widespread use.
• Digital infrastructure and literacy gaps, especially in rural areas, make scaling InsurTech hard.

• Microinsurance for agriculture, health, and small businesses.
• Mobile-first insurance sales through smartphones and digital wallets.
• Using data analytics, AI, and blockchain to improve underwriting and claims.
• Partnerships between InsurTech startups and traditional insurers to boost reach and comply with regulations.

Legal affairs

Obligations and requirements to provide InsurTech-services

• Insurance is tightly regulated by the Short-Term Social Security Supervisory Authority (ASSCSP) and other authorities.
• Companies must have a valid insurance license (insurer, reinsurer, or broker) to offer insurance services, including via InsurTech platforms.
• Digital intermediaries must follow rules for brokers or agents.
• Startups usually partner with licensed insurers or brokers since getting an insurance license is complex and costly.

• All insurance products must be approved by ASSCSP.
• Consumer protection laws require clear disclosure of terms, coverage, and claims.
• Insurers must meet solvency and capital adequacy standards.
• InsurTech platforms must be transparent and fair in underwriting, pricing, and claims.

• Providers must follow Bolivia’s data protection law (Ley N° 164) for collecting and handling customer data.
• Sensitive data like biometric or health info requires strong security and proper consent.

• InsurTech firms must apply anti-money laundering (AML) and counter-terrorism financing (CFT) measures, including customer identification (KYC), monitoring, and reporting suspicious activity.
• Technology and Operational Standards
• Platforms must ensure security, reliability, and continuous service.
• Electronic signatures and contracts must comply with Bolivian e-commerce laws.
• Use of blockchain or AI should follow existing sector regulations, though no specific rules yet target these technologies.

• Clearly communicate product terms, premiums, and claim procedures.
• Provide accessible customer service.
• Follow consumer protection standards enforced by the Ministry of Productive Development and Plural Economy.

Additional comments regarding the legal situation for InsurTech-services or what InsurTech’s must be aware of in this business area

• Licensing: Direct underwriting requires expensive licenses and compliance; most InsurTechs act as tech partners to licensed insurers. Partnerships are essential.
• Data Privacy & Cybersecurity: Strict data protection laws apply, requiring strong security and privacy safeguards to avoid penalties and maintain trust.
• AML/CFT Compliance: InsurTechs must perform thorough KYC and monitor transactions to comply with anti-money laundering laws.
• Digital Identity Challenges: Bolivia lacks a full digital ID system, making customer onboarding slower and more manual.
• Consumer Protection: Transparency in product terms and claims is mandatory; regulators monitor marketing to prevent unfair practices.
• Opportunities: Government support for financial inclusion opens doors for microinsurance and mobile-accessible parametric insurance solutions.

• Regulatory conservatism means strict adherence to traditional insurance laws.
• Licensing is complex and capital-intensive for direct insurers.
• Partnerships with licensed insurers are usually necessary.
• Non-compliance with data privacy and AML laws carries heavy risks.
• Consumer education on digital insurance is needed.
• Limited digital infrastructure impacts smooth onboarding.

Economic conditions

Market size for InsurTech-services and biggest companies in this business area

• Annual growth is expected at 12–18%, driven by:
• Higher smartphone and internet use
• Government financial inclusion efforts
• Increasing consumer insurance awareness
• Partnerships between traditional insurers and fintech startups

• Startups mainly serve as digital brokers or tech enablers.
• Microinsurance and agricultural insurance show strong promise.
• Digital services focus on urban areas; rural reach is limited.
• Challenges include consumer trust and unclear regulations.

Additional comments regarding the economic situation for InsurTech-services or what InsurTech’s must be aware of in this business area

• Insurance penetration is low (around 1–2% of GDP), which limits current market size.
• InsurTech services are emerging, mainly in urban areas with better internet and smartphone access.
• Growth potential is high in microinsurance, agriculture, and health.

• Low trust in insurance requires education and simple, transparent products to build confidence.
• Clear communication and user-friendly digital experiences are essential.

• Internet and smartphone penetration are improving but remain uneven in rural or low-income areas.
• InsurTechs must create affordable, mobile-first solutions with offline or low-data options.

• No InsurTech-specific laws; companies must comply with traditional insurance regulations.
• Strict licensing, AML/CFT requirements, and data protection (Ley N° 164) apply.