The Canadian Life and Health Insurance Association (CLHIA) is requesting the federal government provide insurance companies with more flexibility to invest in technology and commercialize it.
The association voiced its demands in its submission to the Department of Finance Canada’s review of the federal financial services sector,
Investment Executive reported.
“Greater investment and partnerships with fintechs and other innovative firms will allow life insurance companies to better serve our customers and meet the changing preferences and demands of the Canadian marketplace,” CLHIA said in its submission.
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The association argued that while insurers currently invest in technology to improve the efficiency of their businesses or to meet client demands, they are restricted from selling or licensing the technology to companies outside of the financial services sector under the current framework.
“Insurers should be permitted to commercialize innovations outside the realm of financial services,” the association said.
The CLHIA cited an example, saying that if an insurer had developed an online game that promotes financial literacy, it should be able to license the product to a third party for commercialization. Similarly, an insurer that came up with a tool to facilitate compliance with anti-money laundering legislation should also be able to commercialize the technology, the association said.
On top of requesting the federal government to allow insurers to commercial their tech, CLHIA is also calling for more flexibility in the legislation. Under the current framework, insurers need written approval from the federal finance minister before they can invest in fintechs.
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