The Dual Role of Regulation in the Insurance Sector: Protecting Consumers and Fostering Innovation

The insurance sector operates within a complex regulatory framework designed to ensure consumer protection and market stability. With the advent of InsurTech and other technological advancements, regulators face mounting pressure to reconcile their traditional protective roles with the need to foster innovation. This paper examines how regulatory frameworks manage this dual mandate by reviewing secondary data and literature across multiple jurisdictions, including Europe, the United States, and Africa. It explores the successes and challenges of existing models, highlighting issues such as overregulation and fragmentation while identifying opportunities like the implementation of regulatory sandboxes and adaptive policies. The findings offer valuable insights for policymakers and industry stakeholders, emphasizing the importance of balancing consumer protection with technological innovation to foster resilient and inclusive insurance markets. DOI: https://doi.org/10.59857/PTTC9900