The European Insurance and Occupational Pension Authority (EIOPA) has published its feedback statement on its 2021 discussion paper on blockchain and smart contracts in insurance. EIOPA received a number of responses to its earlier paper and has summarised these in the statement. Stakeholders were able to identify a number of use cases for blockchain. The paper also looks at crypto-asset use cases in insurance and considers risks and benefits.
The feedback statement concludes that blockchain and smart contract use cases are still at a very early state but that there are a wide range of opportunities and challenges arising from the use of this technology. In terms of regulation, EIOPA will take into consideration the impact of product governance and IPID requirements for these types of technologies, considering the proportionality of any measures. EIOPA also notes that, although the adoption of crypto-assets is at an early stage in insurance, consumers should be aware of the lack of protection available to them.
Alongside the other European regulatory authorities, EIOPA will continue to monitor market developments and adopt measures where necessary.