Open Insurance and APIs

The Open Insurance framework offers potential benefits for consumers and insurers, since greater availability of data should lead to improved risk monitoring and assessment, a better customer experience and increased fraud detection. Additional access to data generated by both public and private sectors could also provide the opportunity to increase innovation and competition in the insurance sector. At the same time, it will be important to safeguard consumers’ ownership of their data and to ensure that data sharing is consent-based.

The sharing of personal data and web services is a new concept in the insurance industry that should, however, have a very positive impact on the Insurtech market. This process is known as “APIfication”, i.e. insurers themselves becoming digitisation-driven and opening up their APIs (web services) to all Insurtech operators, so that any market player can access this data and information.

Operating within the scope of legal certainty is problematic given that regulation on this matter has not yet been enacted in Europe. Therefore elaboration on the exact scope and objectives of such a framework is necessary.

There are still no codes of conduct or guidelines on Open Insurance.

Nevertheless, in January 2021 EIOPA issued a discussion paper on “Accessing and Sharing Insurance-Related Data Discussion Paper”, so it is conceivable that further developments will be introduced on this subject.

The sharing of information through APIs in the insurance sector has not been specifically regulated at national level.

According to the last report of the French Prudential Supervision and Resolution Authority (“ACPR”) of January 2022, “for several insurers, the portability remains a marginal subject which is still at an early stage (lack of demand from customers, lack of industrialised solutions, lack of technical standards and standardised formats). However, some projects are underway, with data API projects to ensure interoperability between the front and back office and to accelerate the opening of services to partners, as well as data hub projects to share data”.

While the use of new technologies such as AI, blockchain or APIs is increasingly widespread and IVASS is monitoring this trend, there is still no official guidance from the authorities on the correct use of such tools.

There is no current legislation, official guidance nor any kind of code of conduct in place on Open Insurance.
Furthermore, there is still no position taken by the Portuguese regulator ASF regarding this matter.

No local legislation, codes of conduct, or guidelines exist on open insurance and information sharing through API.

Though, on 8 June 2021, the AFM published an explanatory study on “The personalisation of prices and conditions in the insurance sector”. In this study, the AFM describes, analyses, and identifies the development and use of personalised premiums and policy conditions in the Dutch insurance sector, with a focus on non-life insurance.

From an EU law perspective, the EIOPA's discussion paper on “Accessing and sharing Insurance-Related Data Discussion Paper” published in January 2021, has significance.

There is currently no specific legislation, official guidance and/or a code of conduct aimed at governing the sharing of information through API.

Meanwhile, information that is collected or shared through API, may include personal data, among others. In such a case, processing of personal data is subject to general Ukrainian data protection law requirements.

Market participants are currently discussing ways to share information about insureds between different stakeholders (e.g., between insurer and medical facility). These talks however have not yet materialised into specific legislative proposals.

There is currently no legislation or codes of conduct in place on Open Insurance.

However, the UK government published “The Kalifa Review on Fintech” in February 2021, an independent report that included recommendations on how to bring the Open Insurance project to life to support growth and create a framework for innovation.

The FCA published its feedback statement (FS21/7) addressing the opportunities and challenges raised by Open Insurance and setting out its proposals for the future. It suggests that a legislative framework will need to be put in place to develop Open Insurance, but this is yet to be determined.

There are still no codes of conduct or guidelines on Open Insurance.

Nevertheless, in January 2021 EIOPA issued a discussion paper on “Accessing and Sharing Insurance-Related Data Discussion Paper”, so it is conceivable that further developments will be introduced in this subject.