Innovative approaches to financial and legal regulation of insurance products in the InsurTech era

The article was aimed at studying legal peculiarities and identifying topical problems of regulation of innovative insurance products operating with the use of InsurTech technologies. The study applied the comparative legal method to compare the norms of Kazakh and international legislation in the field of insurance. Formal-legal and systemic approaches were used to analyse the structure and content of legal acts regulating InsurTech products. The legal modelling method made it possible to substantiate the prospects for the development of financial and legal regulation taking into account the digital transformation of the insurance market. The study analysed in detail the essence of InsurTech as the integration of digital technologies into the insurance industry, which identified key areas of industry transformation, including smart contracts, automated risk assessment and personalised digital products. A study of the current state of legal regulation of insurance activities in the Republic of Kazakhstan revealed a number of gaps, in particular, the lack of normative consolidation of concepts related to digital insurance services, as well as insufficient flexibility of legal mechanisms to respond to technological changes. As a result of the analysis of international experience, it was found that the EU and the US have introduced specialised regulatory regimes, such as “regulatory sandboxes”, which allow testing digital insurance products under controlled conditions with minimal regulatory burden. Mechanisms such as the FinTech Regulatory Sandbox and InsurTech Innovation Hub have been considered to provide regulatory flexibility while maintaining an appropriate level of consumer protection. The analysis showed that such initiatives facilitate the accelerated integration of innovations into the insurance sector and can be adapted to the Kazakh context, taking into account local legal and institutional peculiarities. Based on the comparative analysis, recommendations for Kazakhstan were proposed, including the development of legal definitions, expanding the functionality of the financial supervisory agency in terms of InsurTech, as well as the introduction of a legal mechanism of “regulatory sandbox” in order to stimulate innovation while respecting the requirements of legal certainty and consumer protection