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InsurTech

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InsurTech provides opportunities for insurers and reinsurers, as well as insurance-focused startups, in applying a technology or practice to a specific facet of the insurance industry or an identified niche risk. Across our offices, Crowell & Moring identifies and manages keystone issues surrounding the acquisition and deployment of InsurTech, as well as in adjacent areas such as cyber risk, data privacy and security, and intellectual property. We also address the unique considerations arising from insurers’ use of artificial intelligence, blockchain/distributed ledger technology (DLT), the Internet of Things (IoT), and drones.

Insurance regulators across 50 states, in addition to federal agencies and offices, have recognized the impact the new wave of technology innovation will have on the insurance industry. Regulators are monitoring InsurTech and adapting and proposing regulations, as they grapple with such significant concerns as privacy, transparency, and consumer education.

Crowell & Moring’s experienced counsel offer one-stop, first-rate lawyering for our insurance and reinsurance clients, as well as entrepreneurs and investors who are seeking to revolutionize the insurance space. The firm offers guidance navigating complex issues regarding:

  • Licensing Requirements – As InsurTechs enter the market, they potentially subject themselves to state insurance licensing requirements governing parties qualifying as underwriters, producers, adjusters, reinsurance intermediaries, and service contract providers. Crowell & Moring has assisted such market entrants with these issues in their formation, as well as, operations.
  • AI, Data Analytics and Algorithms – As insurers seek to utilize “big data” and IoT together with artificial intelligence and data analytics, challenges are inevitable. Regulators have recognized the benefits such innovations can provide, but have also raised concerns regarding the gathering and use of such information, such as lack of transparency and potential for bias, unfair competition within the marketplace, and privacy and cyber threats regarding stored data. Should litigation, insurance regulatory issues, privacy, or data ownership issues arise, our insurance attorneys seamlessly partner with Crowell & Moring’s regulatory, privacy, and litigation teams to provide clients with the multi-faceted legal counsel they need. Our inter-disciplinary approach uniquely serves our clients’ needs.
  • E-Commerce Environment– Consumers increasingly expect that their insurance purchasing and claim-handling experiences will be based in a digital environment, with faster and more efficient results. We help insurers, producers, and InsurTech start-ups conform their online experience to federal and state regulations, which can impact insurance products and supporting technology through the product marketing stage to the conclusion of a claim or cancellation of coverage.
  • Blockchain Initiatives – In a relatively short time, blockchain has made substantial inroads into in how the insurance industry evaluates and manages risk. From managing risk by tracing supply chains and health records to automating parametric insurance and smart contracts, we provide our clients legal advice from the forefront of the blockchain revolution.
  • Cybersecurity & Data Privacy – Whether compliance considerations derive from the EU General Data Protection Regulation (GDPR), or US state-based privacy and security oversight under laws and regulations such as the California Consumer Privacy Act and the NY Department of Financial Services cybersecurity regulation, the firm’s insurance attorneys seamlessly partner with Crowell & Moring’s regulatory, privacy and litigation teams to provide clients with the multi-faceted legal counsel they need.
  • Capitalization and Solvency – Recent years have seen insurers subjected to increased capitalization and risk assessment metrics both domestically and internationally. Our attorneys have represented insurers in navigating the on-site regulatory examination process and have appeared for insurers, producers, and other industry participants on Freedom of Information Law Requests. The firm has also counseled impaired insurance companies and claimants in rehabilitations and liquidations, successfully negotiating with state insurance guaranty funds.

Representative Matters

With a cadre of tech-savvy lawyers — including a co-chair of the ABA’s Insurance and Technology Risk Committee of its Science & Technology Law section — working with our insurance regulatory specialists, Crowell & Moring offers one-stop, first-rate lawyering for entrepreneurs and investors who are revolutionizing the insurance space. Here are just some of the InsurTech initiatives at which we are adept:

  • Using blockchain for underwriting, claims handling, and documenting transactions.
  • Avoiding compliance problems for start-ups selling insurance over the internet.
  • Counseling clients seeking to use smartwatches to benefit health insurance consumers and telematics to underwrite auto insurance.
  • Advising on newly imposed cybersecurity requirements affecting insurers and other licensees in New York and other states.
  • Drafting a licensing agreement for use of customized predictive model in the life insurance space.
  • Acting as principal insurance regulatory counsel to one of the world’s largest sellers of personal tech devices.