The road to innovation

The document outlines a structured approach for regulators to support responsible digital innovation in the insurance sector. It details a five-step process: conducting an innovation gap assessment, identifying ecosystem barriers, selecting appropriate tools (engagement, regulatory, supervisory, and monitoring), putting those tools into action via a workplan, and tracking success through KPIs and market outcomes.

• The process for regulating responsible innovation consists of five main steps: conducting an innovation gap assessment, taking stock of ecosystem barriers, choosing a set of tools for response, putting tools into action, and tracking and monitoring success.
• An innovation gap assessment requires regulators to understand the current state of the insurance market, document existing innovation across the insurance life cycle (including penetration rates and product development), and assess the state of insurtech innovation.
• Innovation is shaped by a broader ecosystem comprising structural factors (infrastructure like electricity and mobile access), market factors (talent pipelines and financial literacy), regulatory factors (test-and-learn environments), and supervisory factors (transparent licensing and support for new entrants).
• Regulators can utilize four types of tools to address innovation gaps: engagement tools (e.g., innovation workshops), regulatory tools (e.g., regulatory sandboxes and tiered licensing), supervisory tools (e.g., non-legally binding guidance and suptech), and monitoring tools (e.g., mystery shopping and complaints analysis).
• Implementing the strategy involves devising action priorities based on context and capacity, then converting these into a workplan with specific activities, responsible parties, timeframes (short, medium, and long-term), and risk mitigation strategies.
• Success should be measured by both activity outputs (e.g., number of new products licensed) and broader market outcomes (e.g., increase in policyholders), using data sources such as licensing statistics and demand-side surveys.

APA

FSD Africa (n.d.). The road to innovation. https://fsdafrica.org/wp-content/uploads/2024/08/The-Road-to-Innnovation-24.08.22-E.pdf

Chicago

FSD Africa. The road to innovation. n.d. https://fsdafrica.org/wp-content/uploads/2024/08/The-Road-to-Innnovation-24.08.22-E.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=The road to innovation |url=https://fsdafrica.org/wp-content/uploads/2024/08/The-Road-to-Innnovation-24.08.22-E.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafricandroad, author = {{FSD Africa}}, title = {{The road to innovation}}, institution = {FSD Africa}, url = {https://fsdafrica.org/wp-content/uploads/2024/08/The-Road-to-Innnovation-24.08.22-E.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }