The Portuguese Insurance Regulator, ASF, published a report on the responses to its “Innovation with responsibility” questionnaire, which was used to shape a possible Technology Free Zone for the insurance and pension funds sectors. The results point to strong demand for a supervised testing environment for new technologies, products and services in real conditions, potentially with adapted or waived legal or regulatory requirements. Of the 32 responses received, 94 percent viewed such an initiative as useful or very useful, 66 percent said they might submit a project within the next 12 months depending on the conditions offered, and 28 percent said they already had a project ready or nearly ready. The respondents were mainly insurers or pension fund managers, insurance intermediaries and InsurTech firms, and 63 percent said they already had innovation projects at pilot or implementation stage. Priority business areas were distribution and digital channels, underwriting and risk assessment, and claims management. Artificial intelligence was the main planned technology, selected by 75 percent of respondents, while no respondent identified distributed ledger technology or smart contracts as relevant. Market participants mainly wanted ASF support in interpreting the legal framework, especially European legislation, alongside prior guidance on the compliance of new products and a dedicated channel for rapid clarification. Views on regulatory barriers were mixed, with 34 percent unsure and 25 percent saying the current framework was sufficient, while others pointed to interpretive uncertainty or clearer obstacles in areas such as insurance distribution, insurance and reinsurance activity, pension funds and insurance contract rules.

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