The focus on product suitability aligns with the NAIC’s efforts to enhance standards for insurance products, particularly in long-term care insurance. Within the property and casualty (P&C) sector, this focus may lead to more thorough assessments to ensure policies, whether for homeowners, auto, or commercial properties, align with policyholders’ specific risk profiles and circumstances.

As embedded insurance and ecosystem partnerships grow, they bring new regulatory challenges. For instance, embedded insurance products must be tailored to the consumer’s unique needs to avoid situations where coverage is inadequate or overly complex due to convenient bundling with another product. Regulatory bodies are tasked with ensuring these innovative distribution methods meet consumer protection standards in areas like clear disclosures, transparent pricing, and efficient claims handling.

Additionally, the data-sharing frameworks that underpin these ecosystem partnerships demand robust oversight to safeguard privacy and ensure data security. https://www.simplesolve.com/bl....og/insurance-ecosyst