March 28, 2019
Given the continuing startup activity in the UK (according to Fintech Finance, UK insurtech companies attracted $1.7 billion in investment in 2018), the UK Insurtech Board has rolled out a toolkit of legal documents intended to help startups form partnerships with industry incumbents and engage with regulators. These documents, developed by the UK Insurtech Board in partnership with law firms Dentons and Simmons & Simmons, cover a number of relationship and contractual issues that may arise during business negotiations. Documents in the toolkit conform to standards within the insurance industry and include non-disclosure agreements and terms of business agreements that companies reference and use as templates.
The UK Insurtech Board, part of the Fintech Delivery Panel (FDP) convened by HM Treasury, has representatives from insurtech startups, incumbents, the Treasury, and the UK Department for International Trade. The toolkit highlights what can be done when regulators and businesses cooperate to clear the way for innovation and make the UK more attractive for startups. As Phoebe Hugh, CEO of UK insurtech Brolly said, “We established these standards to support and encourage the development of insurance startups in the UK, by developing practical guides and documentation to navigate the regulatory and incumbent landscape. I’m delighted to be supporting this industry-led initiative.”
Eileen Burbidge, HM Treasury Envoy for Fintech and chair of the FDP, added, “Without legal support, early stage businesses are disadvantaged in drawing up and negotiating documents that meet the expectations of potential partners.” This toolkit, which can be downloaded free of charge, is the first step to addressing that issue.
Although there is currently no U.S. counterpart to the UK Insurtech Board, The Council will continue to monitor developments in regulatory space, including the establishment of “regulatory sandboxes” in certain states.