Transformation of the Life Insurance Contract in the Context of the Development of "Pay-as-You-Live" (PAYL) Models
( Pp. 43-50)
More about authors
Viktor A. Gorbach
Director of the Legal Department
Renaissance Life Insurance Company Limited; Moscow
; Russian Federation
Renaissance Life Insurance Company Limited; Moscow
; Russian Federation
Abstract:
Abstract: The article examines fundamental changes in the legal construction of a life insurance contract brought about by the introduction of «pay-as-you-live» (PAYL) models. It analyzes the transition from a static model of insurance legal relations, based on a one-time risk assessment, to a dynamic obligation featuring continuous monitoring of the policyholder’s behavior and automated adjustment of the insurance premium.
The purpose of the study is to identify key legal collisions between the existing civil-law regulation (primarily Article 959 of the Civil Code of the Russian Federation) and algorithmic pricing, as well as to substantiate avenues for the comprehensive adaptation of Russian legislation.
Conclusions. As a result of the research, it has been established that the classic construction of a one-time change in the degree of risk is ill-suited to permanent streaming data processing, engendering risks of algorithmic opacity, erosion of insurance secrecy. The article substantiates the need to modernize Article 959 of the Civil Code of the Russian Federation, to introduce a category of «high-risk tariff-setting algorithms» subject to mandatory audit, to extend the insurance secrecy regime to all participants in the PAYL digital ecosystem, and to establish mandatory requirements for algorithmic transparency. The author concludes that without these changes, the legal construction of life insurance risks losing the balance between innovativeness and the guarantees of the policyholder’s rights.
The purpose of the study is to identify key legal collisions between the existing civil-law regulation (primarily Article 959 of the Civil Code of the Russian Federation) and algorithmic pricing, as well as to substantiate avenues for the comprehensive adaptation of Russian legislation.
Conclusions. As a result of the research, it has been established that the classic construction of a one-time change in the degree of risk is ill-suited to permanent streaming data processing, engendering risks of algorithmic opacity, erosion of insurance secrecy. The article substantiates the need to modernize Article 959 of the Civil Code of the Russian Federation, to introduce a category of «high-risk tariff-setting algorithms» subject to mandatory audit, to extend the insurance secrecy regime to all participants in the PAYL digital ecosystem, and to establish mandatory requirements for algorithmic transparency. The author concludes that without these changes, the legal construction of life insurance risks losing the balance between innovativeness and the guarantees of the policyholder’s rights.
How to Cite:
Gorbach, V.A. (2026). Transformation of the Life Insurance Contract in the Context of the Development of «Pay-as-You-Live» (PAYL) Models. Gaps in Russian Legislation, 19(3), 43-50. DOI: 10.33693/2072-3164-2026-19-3-43-50. EDN: UHQNTB
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Kratenko M.V. Increase in insurance risk during the period of validity of the insurance contract: legal consequences (comparative legal study). Journal of Russian Law. 2019. No. 5. EDN: TSNLUH. DOI: 10.12737/art_2019_5_6. (in Rus.).
Smirnova E.A. Organization and technology of effective integrated sales of insurance products. Scientific Bulletin: finance, banks, investments. 2021. No. 2 (55). EDN: JEMVLG. (in Rus.).
Kirillova N.V., Krutova L.S., Yusibova S.S. The impact of digital technologies on the insurance business. Property relations in the Russian Federation. 2025. No. 12 (291). EDN: UZKHRM. DOI: 10.63257/2072-4098.2025.291.12.002. (in Rus.).
Shagapov I.R. Protection of personal data in the context of the development of the digital economy. International Journal of Humanities and Natural Sciences. 2023. No. 1–3 (76). EDN: DQKQXB. DOI: 10.24412/2500-1000-2023-1-3-153-155. (in Rus.).
Savelyev A.I. Problems of the application of legislation on personal data in the era of "Big Data". Law. Journal of the Higher School of Economics. 2015. No. 1. EDN: WYYJPP. (in Rus.).
Savelyev A.I. E-Commerce in Russia and Abroad: Legal Regulation. 3rd ed. Moscow: Statut, 2023. 640 p. EDN: ULJDVZ.
Araslanbaev I.V. Problems of the concept and qualification of an insurance contract in modern civil law. Strategies for the development of modern agrarian economics. 2025. Pp. 92–98. EDN: DLKRQW. (in Rus.).
Mentyukova O.V. Digital technologies in insurance.Penza State Agrarian University, 2022. Pp. 71–74. EDN: AFDCCX. (in Rus.).
Tsvetkova L.I. Artificial Intelligence as a Tool for Transforming the Insurance Business. Finansy. Moscow, 2025. No. 2. Pp. 36–42. EDN: JRYMYE. (in Rus.).
Sychev A.A. The Value of Trust in the Era of Artificial Intelligence and New Ethics: Problems and Challenges. Social Norms and Practices. 2023. EDN: HAGKEU; DOI: 10.24412/2713-1033-2023-3-64-78. (in Rus.).
Bryzgalov D.V. Digitalization of underwriting in the Russian insurance market. STAGE 2020 No. 2. EDN: OFDTAD. DOI: 10.24411/2071-6435-2020-10015.
Bryzgalov D.V. TSifrovizatsiya anderraytinga na rossiyskom strakhovom rynke // ETAP. 2020. № 2. EDN: OFDTAD. DOI: 10.24411/2071-6435-2020-10015.
Keywords:
PAYL, insurance contract, digitalization, PAYL, insurance secrecy, personal data, life insurance.
