A Regulatory Approach as a Framework for Policy-Making in the Development of InsurTech Companies in Iran

Technological advancements and innovations in business models have transformed the delivery of insurance services, leading to the emergence of insurtech companies. Insurtechs increse attraction of insurance offerings and contribute to a higher penetration rate of insurance services, garnering increased attention from policymakers in recent years. However, the growth of insurtechs in the country often encounters regulatory challenges.This study aims to explore the regulation of insurtechs and identify existing regulatory gaps to foster the application of technology and innovation in the insurance industry. Utilizing a qualitative case study approach and interviewing with 17 experts at the beginning of 2024, The regulation of insurtechs have been examined from the perspectives of environment , supervision, and service delivery. So, the infrastructural weaknesses, existing barriers posed by legislators and policymakers, as well as the challenges faced by service providers in the development of insurtechs have been identified. Based on these findings, the study offers several recommendations for effective regulation, including: establishing a legal and operational framework to expand the insurance market, empowering micro-level decision-making in the insurance industry, leveraging insurtech capabilities through government procurement, creating a sandbox testing environment, clarifying the role of the central insurance authority with a focus on evaluating service provider performance, ensuring the independence of insurtech procedures, and implementing incentive programs to encourage the utilization of insurtech