Insurtech in Bolivia: Functional Analysis of its Regulatory Regime

Abstract

The term insurtech does not have a single, clearly defined meaning, as it is used interchangeably to refer to digital insurers, intermediaries, or software providers. This lack of conceptual precision has created confusion regarding its legal classification, particularly in highly regulated systems such as Bolivia’s, where the Insurance Law (Law 1883) coexists with the recent Regulation on Financial Technology Companies (ETF). The purpose of this article is to determine the legal regime applicable to the different categories of insurtech in the national market and to assess the adequacy of the current regulatory framework. Through a dogmatic and normative analysis methodology, a functional classification is proposed that distinguishes between entities that assume risk and providers of technological services. It is concluded that regulation should focus on the substance of the activity (function) rather than its commercial designation, identifying Financial Technology Companies (ETFs) and the regulatory sandbox as appropriate avenues for innovation that does not involve the direct assumption of risk.