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InsurTech is composed of the words “insurance” and “technology”. It is used as a collective term for the application of modern technologies in the domain of insurance services.
Digital and mobile brokers: FinTechs belonging to this category mostly act as digital insurance brokers and provide users with an overview of their insurance contracts with their respective conditions. Some FinTechs offer very short-term insurance contracts to cover specific cases which can be concluded often spontaneously via mobile devices. Oftentimes additional consulting services are offered.
Internet of things: FinTechs belonging to this category collect data by measuring for example the driving style of the customers or through wearables the customers wear to consult on, offer and/or manage the customer’s insurances.
Introduction
Attitude of the country towards InsurTech-services
Finland's generally positive and forward-looking attitude towards FinTech extends to the InsurTech sector also. However, there are currently no dedicated InsurTech companies operating in the country. Nevertheless, major insurance companies are invested in expanding their digital offerings and continuously improving their online services.
Legal affairs
Obligations and requirements to provide InsurTech-services
In Finland, insurance companies operate under the Insurance Companies Act (521/2008), which sets out the legal framework for both life and non-life insurers. In addition, insurance companies must comply with the Insurance Contracts Act (543/1994) and the Insurance Distribution Act (234/2018). Life insurers are subject to additional prudential requirements, particularly in relation to their investments, as set out in these laws. In addition, specific legislation regulates certain types of insurance, such as transport insurance and workers' compensation.
Additional comments regarding the legal situation for InsurTech-services or what InsurTech’s must be aware of in this business area
Notably, in contrast to the broader EU framework, Finnish non-life insurance companies are fully subject to antimoney laundering (AML) legislation. As obliged entities, they must comply with all provisions of the Finnish AML regulations.
Economic conditions
Market size for InsurTech-services and biggest companies in this business area
No official data available.
Additional comments regarding the economic situation for InsurTech-services or what InsurTech’s must be aware of in this business area
N/A