AUSTRIA Law and Practice

Contributed by: Markus Fellner, Florian Kranebitter and Florian Henöckl, Fellner Wratzfeld & Partners

10. Insurtech

10.1 Underwriting Processes

The acquisition of information is crucial in the insurtech area. The possibilities for collecting information and evaluating it vary. The approaches differ from well-established systems that are based on personal contacts to systems that use technical data collected in a variety of ways (eg, smartphones and sensors). Aspects of data protection law must always be observed in all areas in which automated data is collected and evaluated.

10.2 Treatment of Different Types of Insurance

In the area of insurtech, the Austrian trade regulations must be observed in addition to other regulations. For example, Section 137 of the Austrian Trade Act deals with brokering insurance. Insurance mediation is defined, among other things, as offering, proposing or carrying out preparatory work for the conclusion of insurance contracts or the conclusion of insurance contracts.

11. Regtech

11.1 Regulation of Regtech Providers

Compared to the more established categories of fintech, regtech receives comparatively little attention from a regulatory perspective. However, due to the close proximity in terms of content, it can be assumed that the general regulatory provisions are decisive.

11.2 Contractual Terms to Assure Performance and Accuracy

In the absence of explicit regulatory provisions, it is possible in this area to contractually provide for stricter standards in individual cases in addi- tion to the general standards that must be met to ensure performance and accuracy.

12. Blockchain

12.1 Use of Blockchain in the Financial Services Industry

While the implementation of blockchain is often discussed and thought about, as far as can be seen there is still a certain scepticism from traditional players. In addition to these, start-ups coming onto the market are still trying to combine proven structures with this new technology. However, it can be assumed that at least most of the traditional players will quickly adapt their concepts once the individual technologies are ready for the market; an ongoing partial implementation is already underway.

12.2 Local Regulators’ Approach to Blockchain

The approach of the national legislature and the FMA is essentially based on the question of how to deal with coins such as bitcoin, ether and litecoin. This approach is primarily at the regulatory level, whereby there is an attempt to clarify the applicability of existing regulatory provisions on the basis of a missing general definition of the term “coin”.

12.3 Classification of Blockchain Assets

The current approach and status, as stated under 12.2 Local Regulators’ Approach to Blockchain, means that other types of blockchain assets still receive little attention. In practice, there are considerations and efforts to make a classification based on the general provisions, whereby in various areas – already with respect to the transfer of ownership – different questions arise that cannot really be satisfactorily solved using the existing legal framework.