Bank of Lithuania regulatory sandbox to continue P2P insurance platform testing
The Bank of Lithuania extended the authorisation for UAB Workpower to test its peer-to-peer (P2P) insurance platform Ooniq in the Bank of Lithuania’s regulatory sandbox for six more months. UAB Workpower is the first participant of the Bank of Lithuania’s regulatory sandbox.
The P2P insurance platform is based on the principles of the sharing economy, where its members form groups of peers in order to protect themselves against losses, make their own decisions on loss compensation using pooled funds and get back the unused ones. The P2P insurance platform Ooniq was created in October 2019 and at first was tested only by the Ooniq team, seeking to identify and correct shortcomings in the platform’s rules and information system, ensure clarity of the terms and conditions of its use, improve its financial stability and guarantee loss compensation. In December the platform was tested under real conditions. During the testing period, the platform has been offering only one type of cover for smartphones and tablets, while the list is expected to grow over time.
The P2P platform has not yet tested all P2P insurance processes, especially loss compensation and repayment of unused funds, hence the platform testing continues.
The Bank of Lithuania has been supervising and consulting UAB Workpower – the owner of the P2P insurance platform – throughout the entire testing process. According to available information, UAB Workpower is not considered an insurance company, insurance intermediary or ancillary insurance intermediary, while the contracts concluded on the P2P insurance platform are not considered insurance contracts. Therefore the activities of the company and the platform itself are not subject to requirements set out in the Republic of Lithuania Law on Insurance.
The Bank of Lithuania regulatory sandbox aims at paving the way for faster and easier introduction of fintech innovations in the Lithuanian financial market where regulation is insufficient or unclear, allowing the Bank of Lithuania to identify emerging risks, regulatory shortcomings and to take measures to eliminate them. More information on participation in the Bank of Lithuania’s regulatory sandbox is available on the Bank of Lithuania website.