Country _ Name
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.


Attitude of the country towards InsurTech-services

There is a recognised need for innovation in the insurance space in New Zealand. A 2018 study from Lloyd’s reported New Zealand as having the second highest expected losses from natural disasters and the fourth highest rate of insurance penetration within the 43 participant countries.

The risks for insurers supplemented with the requirement for transparency under New Zealand’s regulatory framework has and continues to create opportunities for InsurTech. Particularly, in relation to data and analytics.

Legal affairs

Obligations and requirements to provide InsurTech-services

While there is nothing InsurTech specific within New Zealand legislation, insurance providers (digital and mobile brokers included) are subject to supervision by RBNZ and licensing requirements pursuant to the Insurance (Prudential Supervision) Act 2010 and its associated laws and regulations. 

In instances where the InsurTech services involve supplying insurance (digital and mobile brokering for example) the provider must register as Financial Service Providers in accordance with the FSPA with the associated costs as outlined at 1.a. ii. above.

A Financial Advice Provider Licence must be obtained. Licence application fees range from $703.80 to $1,060.30 depending on the relevant class relating to the application. An assessment is required, and additional fees may be imposed subject to the length of the assessment.

Further, would be insurers must apply to RBNZ for a licence. As at the date of writing, the application will incur a fee of $960.25. If successful, there is an annual confirmation fee of $75 (plus GST) and an FMA levy, which is dependent on how many classes under which the provider is licensed as a financial service provider.

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

Providers of services related solely to data and analytics will need to be compliant with the Privacy Act where they are retaining personal information of insurers clients.

Insurers providing services to retail clients will need to consider the Privacy Act and New Zealand consumer protection laws and regulations. In all instances, it should be considered whether compliance with the AML/CFT will be required particularly, in relation to insurance underwriting.

Economic conditions

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

There is insufficient InsurTech focused market information publicly available. PWC published a survey “Insurance 2020: The digital prize” which reported that 26% of consumers purchased their policies online and 71% stated they performed online research prior to purchasing a policy. Fifty-per-cent of consumers surveyed stated they were prepared to provide their insurer



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