Suptech in insurance supervision

FSI Insights  |  No 47  | 
14 December 2022
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 |  20 pages

Given the importance of the role of supervisory technology (suptech) in the "new normal", insurance supervisors see the need to clearly understand the potential of suptech to aid their work. This paper aims to contribute to this understanding by citing concrete examples of how suptech tools are used by 22 insurance supervisors. The paper covers 38 suptech tools, which are classified according to their intended use – whether for prudential or conduct supervision, or both. The paper finds that suptech tools used by insurance supervisors for prudential supervision are similar to those used by banking supervisors. Most of the reported conduct tools, on the other hand, are specific to the insurance sector. Meanwhile, most of the tools that may be used for both prudential and conduct supervision deal with data collection. Going forward, many insurance supervisors are specifically aiming to develop integrated systems that cover different applications and cover the entire supervisory process.

JEL classification: C45, C88, C89, G22, G38, O31, O32

Keywords: suptech, insurance, prudential supervision, conduct supervision, data analytics, innovation, AI, artificial intelligence, ML, machine learning, NLP, natural language processing