The American Insurance Association (AIA) has called for the creation of a US regulatory sandbox, where insurers can test digital innovation. Michael O'Malley, SVP for public policy at the AIA, said many companies are coming up with innovative ideas on approaching insurance, but can be hindered by the regulatory system. "The challenge is that we have to get this right in order to make sure it works and doesn't create unintended consequences," O'Malley said.
The American Insurance Association (AIA) has called for the creation of a US regulatory sandbox, where insurers can test digital innovation. Michael O'Malley, SVP for public policy at the AIA, said many companies are coming up with innovative ideas on approaching insurance, but can be hindered by the regulatory system. The AIA has put forward a legislative proposal to the National Association of Insurance Commissioners that would allow for the creation of an effective sandbox for insurers to test concepts in a supervised environment and without the risk of flouting regulations.