InsurTech Regulation: What You Need to Know About Rules, Risks, and Compliance

When you buy insurance online, get a quote in seconds, or file a claim through an app, you’re using InsurTech, technology that transforms how insurance is sold, priced, and paid out. Also known as insurance technology, it’s changing everything from how risks are assessed to how fast claims get settled. But as fast as these tools move, the rules haven’t kept up—until now. Governments and financial regulators are stepping in to make sure innovation doesn’t leave consumers behind.

InsurTech regulation isn’t just about stopping fraud. It’s about making sure algorithms don’t discriminate, data stays secure, and customers aren’t locked out because they can’t prove their identity the old way. That’s why Strong Customer Authentication (SCA), a security standard that requires multi-step verification for digital transactions shows up in insurance apps too. It’s the same logic behind why banks now ask for a fingerprint or code before letting you pay a bill. And when it comes to counter-terrorist financing (CTF), rules that stop money from reaching illegal groups, insurers now have to screen customers just like banks do—because bad actors are trying to use policies to launder cash.

These rules aren’t just paperwork. They affect your premiums, your claims speed, and even whether you can get coverage at all. If you’re using a digital broker that skips the paperwork, that’s thanks to alternative verification, using data like phone records or spending habits instead of IDs to confirm who you are. But that convenience comes with new risks—and new oversight. States like New York are already passing laws to force clear disclosures on AI-driven pricing. Others are watching closely to see if these tools actually lower costs or just hide fees behind complex terms.

What you’ll find in these posts isn’t a legal textbook. It’s real-world insight into how regulation is changing digital insurance today. You’ll see how compliance shapes product design, how fraud controls impact customer experience, and why some apps work better than others—not because they’re fancier, but because they play by the rules. Whether you’re a policyholder, a small business owner, or just curious about how your car insurance app works, this collection breaks down what matters and what doesn’t. No jargon. No fluff. Just what you need to know to understand the system you’re using.