Insurers are faced with ever-recurring changes. Indeed, technological developments are posing new challenges for insurance companies already well established in the market. Innovative companies recently set up in the insurance industry (InsurTechs) are already using successful technology-driven business models. They are increasingly participating in areas of real net output (net value added) in the business of risk.
Debates on the challenges and opportunities facing banks, as a result of technological developments and demographic change, have become the norm. These topics were initially viewed as a threat to banks. However, partnerships between fintechs and banks are now widespread, and corresponding services have since become very much a part of the services and ongoing development of many banks.
The regulator urges various initiatives for financial institutions to create access to data and information by third parties, whose seclusion is not justified. Details of this market opening in the financial industry, fostered by the Payment Service Directive PSD II, have been specified in two major points recently published as “RTS” (Regulatory Technical Standards) by the EBA: strong customer authentication and secure communication for electronic payment services. These regulations have major consequences on the current standards and established processes with cashless transactions.