Agenda

1 Introduction to Insurtech

2 Insurtech Technology

3 Insurtech Trend

4 Insurtech: Law & Regulation

5 Outlook of Insurtech in Asia

6 Data Protection Laws

1

Introduction to Insurtech

Insurtech investments over time

Source: Willis Towers Watson

Quarterly Insurtech funding volume: all stages

Sorachon Boonsong | 6 September 2019

Current Development on Insurtech in Asian Countries

Insurtech transactions

55%

9%

6%

5%

3% 3%

19%

2012 - Q2 2019 Transactions: 1146

United States

United Kingdom

China

Germany

India

France

Others

Transactions in 2012 - 2019Q2 and transactions in 2019Q2

42%

16%

9%

6%

27%

Q2 2019 Transactions: 69

United States

United Kingdom

China

France

Others

Source: Willis Towers Watson

How is it deployed ?

Customer Engagement Data Analytics Internet of Things Wealth Management

Introduction to Insurtech

Customer Engagement

The digital age has reshaped customer

expectations.

Insurtechs have redefined the focus on the

insurance customer – making the insurance

experience a simpler one.

From a customer’s perspective, insurance falls

into three parts:

Buying it

Owning it

Using it

Introduction to Insurtech

Source: The Digital Insurer

Buying it

Cuvva

Owning it

Thai Vivat

Using it

Claim Di

Internet of Things (IoT)

Internet of Things

Telematics

Sensors

Wearables

Asset and Home

Security

Introduction to Insurtech

Source: MelroseINC

Internet of Things (IoT)

What information does the IoT record?

the time and speed you drive

your motorway miles

your total mileage

the total number of journeys you make

if you brake or accelerate sharply

Introduction to Insurtech

Data Analytics Introduction to Insurtech

Wealth Management

The opportunities on the asset management side of insurance business.

Insurers have been actively making investments and acquisitions in the digital wealth management space, ranging from robo-advisors, to management service startups, to social trading investment networks.

Introduction to Insurtech | Insurers in digital wealth management

Investment | Acquisitions

Source: CB Insights

Wealth Management

Robo-adviser, what is it ?

Robo-advisers use

algorithms to generate

investment advice tailored

to personal investment

objectives with minimal

human interaction

Introduction to Insurtech | Insurers in digital wealth management

Source: Investorjunkie

2

Insurtech Technology

What technology is used ? Insurtech Technology

CTRL ALT DELETE

Inefficiencies

Stagnation

Excessive

Risk

Distrust

Authentication

& Biometrics

Digital and

Mobile Payment

Flexible Platform

(API)

Cloud

Computing

Blockchains &

Distributed

Ledgers

Cyber

Security

Augmented

Intelligence

Big Data

Advanced

Sensors/

Wearables

Big Data What technology is used ?

AI Use Cases in Insurance What technology is used ? | How are insurers using AI

Fraud detection

Faster customized claims settlement

Behavioral policy pricing (through IoT

usage based insurance)

Customer experience & coverage

personalization (Chatbots)

AI Use Cases in Insurance What technology is used ? | Shift Technology

AI Use Cases in Insurance What technology is used ? | Lemonade

“Instant” home insurance through a smartphone

Lemonade’s “charming artificial intelligence bot”,

Maya, crafts a tailored insurance policy for

customers

90 seconds to get insured, 3 minutes to get paid

Method of connecting peers around charitable

causes and any surplus money after payouts goes

to the selected charitable cause – disincentive to

insurance fraud

Payment system integrated

Artificial/Augmented Intelligence What technology is used ? | Chatbot

Blockchain insurance use cases

Fraud detection

Expedition policy creation and claims

processing

On demand insurance

Fizzy powered by AXA

Source: Trustnodes

3

Insurtech Trend

Trends

Change in mode of

Consumer Engagement

Big Data & Smart Analytics

New Product

Offerings

Insurtech Trends

cyber risk

access to new markets

digitalization of distribution,

claims, policy management

connect insurance with

complementary products

Increased Collaboration

Insurance companies have innovation hubs to nurture start ups.

Incumbent insurers are collaborating with insurtech start ups to deliver better outcomes for customers

Start ups are employment B2B/B2B2C models.

Insurtech Trends

4

Insurtech Law & Regulation

Legal Issues

Digital Contracts

Regulatory risk

License/Approvals Required

Online distribution models

Cross Border Activities

New Products

AML/KYC

Outsourcing

Insurtech Law & Regulation

Source: GovTech Singapore

Information Security Issues

Data Privacy

Data Storage (use of

cloud)

Fraud

Cyber attack

Risk Management

Insurtech Law & Regulation

5

Outlook of Insurtech in Asia

Baker McKenzie Asia Pacific Insurance Toolkit Our AP Insurance Toolkit summarizes current trends across jurisdictions in Asia. It covers a range of issues that typically arise in the insurance industry.

Asia Pacific Regulatory Landscape and Key Considerations

Top 10 Issues to Consider in a Regional Bancassurance Deal

Asia Pacific Guide to Insurtech Innovation and Utilization

Asia Pacific Guide to Data Protection and Cybersecurity for Insurers

Asia Pacific Guide for Insurance Sales, Advisory and Distribution

Asia Pacific Guide for Investing in Insurtech Start-ups

Asia Pacific Guide for Directors and Senior Managers of Insurance Companies

Insurance Regulatory Landscape and Key Considerations for M&A Transactions

Regulated Insurtech Activities

China internet payment / internet lending / equity crowdfunding / internet fund sales / internet insurance / internet trust and

internet consumer finance

Hong Kong insurance-related activities / payment and settlement system / equity crowdfunding platform / insurtech activities

relating to offer of investments or securities / cryptography and data encryption products

Indonesia besides insurance-related activities, no specific insurtech activity regulated

Japan besides insurance-related activities, no specific insurtech activity regulated

Malaysia insurtech activities involving money changing and remittance service / crowdfunding / cryptography and data

encryption

Myanmar besides insurance-related activities, no specific insurtech activity regulated

Philippines besides insurance-related activities, no specific insurtech activity regulated

Singapore payment and settlement system / money changing and remittance / activities relating to offer of investments and

securities / crowdfunding platform / custodial service / cryptography and data encryption

Taiwan payment and settlement systems / fund remittance / securities-related businesses /

Thailand besides insurance-related activities, no specific insurtech activity regulated /

Vietnam besides insurance-related activities, no specific insurtech activity regulated

Conclusions

Regulators are supportive and sandbox

has been introduced in various jurisdiction.

Insurtech is still behind Fintech,

but it is picking up the momentum.

No single comprehensive regulation.

Many legal aspects must be taken into consideration.

Involves more than one regulators per jurisdiction.

Cost of development plays an important role.

Concerns from data privacy and cybersecurity perspective.

Insurtech Law & Regulation

6

Data Protection Laws

Key Issues Data Protection Laws

Electronic Transactions Act Binding effect and legal

enforcement of the electronic

messages/data

Official Information Act Personal data of individuals

under the possession or

control of a state

agency/state enterprise

Computer Crime Act Illegal content – Take down

safe harbor

Data retention

Cybersecurity Critical information

Infrastructure Organization

Data Protection Data protection requirements

under PDPA

National Intelligence Act To order any person/government agency to submit data or document(s)

which impact national security

In certain necessary situations, NIA can take any action (e.g. use of

electronic, scientific, and telecommunications devices or other technology).

Acts Act on Insurance Business

Operation Supervision and

Promotion Commission

Life Insurance Act

Non-Life Insurance Act

Road Accident Victims

Protection Act

Other Laws Content

Intercept

IT security

Intellectual property

Preparation Period for PDPA Compliance Data Protection Laws

27 May 2020 27 May 2019

1 year

Preparation period

for the data

controller/processor

within 1 year

Published

in the Government

Gazette

Key provisions

shall become effective

one year after

publication date

Sub-regulations

to be issued

Personal Data Protection Act B.E. 2562

Personal Data (Alive Person)

Directly identifiable

Indirectly identifiable

The Player Data subject

Data controller

Data processor

Personal data protection

committee

Enforcement Extraterritorial applicability

Entities in and outside Thailand

Legal Basis Consent of legal exceptions

Obligations Data controller

Data processor

Personnel Data protection officer?

Reresentative?

Penalties Criminal liabilities

Civil liabilities

Administrative sanctions

Director’s criminal liabilities

Right of Data Subjects Right to be informed

Right to rectification

Right to data portability

Right to access/obtain record

Right to object

Right to erasure (be forgotten)

Right to restriction

Right to consent withdrawal

Right to complaint

Penalties

Civil Liabilities Compensation and/or punitive damages up to 2 times the actual

compensation

Criminal Liabilities Non-compliance could be punished with imprisonment up to 1 year, or a

fine not exceeding 1,000,000 THB, or both.

Director; Manager; Any person who is responsible for the act of the entity

Administrative Liabilities Non-compliance could be punished with administrative fines up to

5,000,000 THB

Class Action

Data Protection Laws

OIC (Insurance

Bureau)

Insurance

Company A

Insurance

Company B

Intermediaries

(Agent, Broker,

Bank)

Individuals

Corporate

(Group

insurance)

Individuals TPA / Hospital

/ Garage / Etc.

Individuals

Corporate

(Group

insurance)

Individuals

F l o w o f R a w

P e r s o n a l D a t a i n

I n s u r a n c e I n d u s t r y

Questions

bakermckenzie.com

Baker & McKenzie Ltd. is a member firm of Baker & McKenzie International, a global law firm with member law firms

around the world. In accordance with the common terminology used in professional service organizations, reference to a

"partner" means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an "office" means an

office of any such law firm. This may qualify as “Attorney Advertising” requiring notice in some jurisdictions. Prior results

do not guarantee a similar outcome.

© 2019 Baker & McKenzie Ltd.