Digitalization in Insurance Law: Regulatory Challenges in China and the United States

Abstract

Background: The digital transformation of the insurance sector has introduced new challenges and opportunities for legal regulation. Countries like China and the United States, as global technology leaders, have distinct approaches to managing these changes.
Objective: This article aims to compare the regulatory challenges of digitalization in the insurance sectors of China and the United States. It focuses on legal aspects such as cybersecurity, data privacy, and algorithmic decision-making.
Methodology: The study employs a doctrinal and empirical analysis, reviewing legal texts, policy papers, and industry reports. Case studies of digital insurance providers in both countries illustrate the practical implications of regulatory differences.
Findings: China has implemented stringent cybersecurity laws and centralized oversight, ensuring greater data security but limiting innovation. In contrast, the U.S. adopts a decentralized model, fostering innovation but creating regulatory gaps. Harmonizing data privacy standards and adopting transparent algorithmic practices are essential for mitigating these challenges.