Virtual Competition: Online Platforms, Consumer Outcomes and Competition in Insurance
Online platforms can foster insurance market transparency and reduce both transaction costs and information asymmetries, factors typically associated with increased competition and societal welfare. However, online platforms also give rise to new challenges concerning consumer protection and competition which should be addressed by policymakers.
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Virtual Competition: Online platforms, consumer outcomes and competition in insurance
The platform economy has the potential to deliver substantial economic and societal benefits. At the same time, the rise of online platforms creates new challenges for consumer protection and competition policy. In order to ensure a thriving and competitive marketplace, policymakers should consider the role of data as a production factor and data itself as a potential barrier to market entry when assessing market power and potential anti-competitive conduct.
Virtual Competition: Online platforms, consumer outcomes and competition in insurance | Research report
Author: Benno Keller
The platform economy has the potential to deliver substantial economic and societal benefits. At the same time, the rise of online platforms creates new challenges for consumer protection and competition policy. In order to ensure a thriving and competitive marketplace, policymakers should consider the role of data as a production factor and data itself as a potential barrier to market entry when assessing market power and potential anti-competitive conduct.
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Infrastructure climate resilience should be addressed urgently
The insurance industry can contribute in two ways to reduce the infrastructure gap: first, as long-term investors that promote new projects, and as risk managers that provide expertise for de-risking the projects, says Tsuyoshi Nagano, President and CEO of Tokio Marine.
Insurers need to work with regulators to ensure capital charges are fair and balanced
Capital charges to insurance companies interested in investing in infrastructure projects are higher than they should be relative to the inherent risk of long-term infrastructure projects, says Dean Connor, President and CEO of Sun LIfe Financial.
Public policy is necessary to make climate resilience a requisite for infrastructure
Introducing risk management in policy making and in the governance of public institutions would go a long way in attracting capital into infrastructure projects, says Charles Brindamour, CEO of Intact Financial. Recorded at the Extreme Events and Climate Risk Forum 2018 in Toronto.
Managing Physical Climate Risk—Leveraging innovations in catastrophe risk modelling
As the effects of climate change become more severe, catastrophe risk modelling is more relevant than ever. Few sectors of the economy play a role as intense in catastrophe recovery as insurance; therefore, the industry should strive to continually strengthen the predictive power of its catastrophe modelling capabilities.
Societal benefits would arise from the integration of climate science into catastrophe risk modelling
Catastrophe risk modelling has revolutionised the way insurers assess, price and manage disaster risks. Its usefulness to society could be even further enhanced by integrating the latest climate science, observational capabilities and emerging technologies.
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