1. Emirates Insurance Association in conjunction with Gulf Insurance Federation
LEGAL & ETHICAL ISSUES
InsurTech & Health Insurance Providers
4th Annual Health Insurance Conference
8th & 9th November 2017

2. Contents Introduction – The Future of Things to Come #
Regulatory Impact
Pace of Legislation v Speed of Technology Innovation
Impact of InsurTech on Consumers & Health Insurance Providers
Examples – Cyber Business Interruption & Telemedicine

3. introduction
The Future of Things to Come
“InsurTech”

4. Cybersettle
The Future of Things to Come

5. @scene
The Future of Things to Come

6. Ki
The Future of Things to Come

7. KLAiM
The Future of Things to Come

8. Regulatory Impact Supply-side & Demand-side
Impact on insurers’ business models
Regulation & Supervision
Will need to evolve
Achieve the right
Balance between policy
Holder protection while
Keeping momentum of
Innovation
Change in insurance
Value chain e.g. Start-ups

9. Pace of Legislation v Speed of Technology Innovation
Innovation concepts and the legal landscape
Big data & Data Analytics – Invest in Preventative measures
Artificial Intelligence (AI) –
Smart Contracts – Distributed Ledger Technology new legal and liability framework needed
Peer-to Peer and On Demand Insurance
May disrupt conventional risk pooling common to insurance –put cover out of reach in terms of affordability and result in exclusion of cover
Must be role of Regulators to identify this trend and address at Government Levels

10. Pace of Legislation v Speed of Technology Innovation
Innovation concepts and the legal landscape
Blockchain – distributed across a network of computers
Decentralised Autonomous Organisations (DAOs) – entities that operate through pre coded rules
Smart Contracts – Coded instructions which execute on the occurrence of any event working through blockchain
Change the Insurance value change?

11. Pace of Legislation v Speed of Technology Innovation
Innovation concepts and the legal landscape
Legal & Regulatory Challenges
Legal – enforceability of smart contracts
Jurisdiction Governing Law
Legal Status of database (DAO)
Liability of database (DAO)
Regulatory – AML, Taxation Compliance & Consumer Protection
Solutions – Protected Sell Companies (PCC) Framework Agreements

12. Impact on Consumers Regulatory Requirements
Regulatory Oversight - Risk Carriers are potentially one or more steps removed from the policyholder – Why? - More participants in the insurance value chain – Tech start-ups etc. Regulators will need to reassess their oversight and regulations. Prudential & Capital requirements – may change based on presumption that Technology will reduce average risk – lowering risk premium. Conduct of Business – insurance products reflect the health insurance provider’s objectives and not the consumer – as insurance becomes reducing part of service. New consumer protection laws needed? Data Ownership – Technology will increase data collection and usage – Overall of data protection legislation and transfer rules Consumer Choice – May reduce – more customisation to individual and greater use of data – if not transferred may not offer quote – data transfer legislation needed

13. Impact on Health Insurance Providers
Legal Changes Needed because of the two facts below
Societal Changes: ‘Demand Side Disruption’ – How consumers may react to or influence changing insurance landscape Technology: ‘Supply Side Disruption’ – how aspect of the insurance value chain may change Examples: Smart Contracts – ability to facilitate, execute, negotiate perform the agreement in one platform under a network of multiple sites and institutions through an asset data base – Policy Documents and Terms Peer to Peer Insurance – emerging technologies offers substantial benefits for using this model On demand insurance – coverage of risks faced at a certain moment

14. Cyber Business Interruption
Keys Concerns
A significant & developing area of risk Insufficient assessments of Cyber security practices for outsourced providers Cloud computing will redefine IT landscape – Global Cloud market is has grown to over £80 billion Legislative Framework – Companies are collecting more data than ever before and legal obligations arise All data controllers are responsible for their outsourced processing under the application of many of the data and privacy laws Do health insurance providers have Cyber risk covered?

15. Telemedicine Set to change traditional Health Insurance Coverage
Telemedicine or ‘Instant Medicine’ Means of evaluating, diagnosing and treating patients from remote locations – potential to revolution healthcare and health insurance coverage from its traditional sense Some of the legal challenges for health insurance providers will be: Consent of policyholder Reliability of technology Managing this new outsourced remote provider Protection of Data

16. Legal & Ethical Concerns
Summary
Regulatory laws, supervision and oversight is not yet developed enough to deal with these changes Legislation will need to be implemented quickly to address both Demand Side Disruption and the Supply Side Disruption The insurance value chain may change in terms of new technology entrants and compromise consumer protection and data protection Ethical issues for health insurance providers are whether they embrace technology to reduce claims while increasing premiums to invest in technology at the cost of excluded certain consumer groups