Tech bolsters insurance industry compliance

Technology is helping insurance institutions accelerate their deployment of visual traceability systems and better meet new regulatory requirements on Internet insurance sales.

China’s Banking and Insurance Regulatory Commission issued a notice in June on regulating the traceability management of Internet insurance sales, which will be officially implemented from October 1.

Under the new requirements, insurers and insurance intermediaries should record and save the trading behavior of insurance products on their self-operated platforms through sales page management and sales process records, so that relevant behavior can be inspected.

ZhongAn Technology, a subsidiary of ZhongAn Online P&C Insurance, said it has provided a visual traceability system for dozens of insurance and banking institutions, including ICBC AXA Life Insurance, Manulife-Sinochem Life Insurance, AIG and HSBC, and is supporting compliance operations of their Internet insurance businesses.

Recently, it signed a contract with an insurance agency of Didi Finance and aims to build a visual backtracking scheme based on the ride-hailing platform’s fragmented insurance scenarios.

Compliance technology is a subfield of regulatory technology. Global regulatory technology market profit will reach US$7.2 billion in 2023, with an estimated compound annual growth rate of 25.4 percent during 2018-2023 period, according to a report from Infoholic Research LLP.