Fadata, a provider of software solutions for the insurance industry, highlighted the pivotal role of digitalisation in shaping the future of insurance in 2024.
The company identifies three major trends, predicting that the adoption of Cloud services, the integration of AI and analytics applications, and the rise of digital ecosystems will revolutionise the sector.
Additionally, the megatrend of sustainability is expected to exert a significant influence.
Fadata underscores the industry-wide shift towards the Cloud, particularly the public cloud, as a central theme in modernisation initiatives.
Insurers embracing Cloud solutions stand to benefit from enhanced agility, flexibility, cost efficiency, and scalability. The rise of Software as a Service (SaaS) solutions is anticipated to replace on-premises environments, enabling companies to swiftly adapt to market changes and introduce innovative services.
Acknowledging the insurance industry’s increasing reliance on data, Fadata emphasises the crucial role of AI and analytics applications. The advent of generative AI is driving the technical foundation for comprehensive data integration and analysis, providing insurers with vital insights.
These solutions empower insurers to better understand customers, identify risks, and offer personalised services. The year 2024 is anticipated to mark a significant uptick in the practical application of AI, steering the industry towards a more customer-centric approach.
Fadata points to the growing trend of digital ecosystems in the cloud, facilitating seamless collaboration between insurers and other service providers. This shift towards openness enables insurers to differentiate themselves, offering innovative products tailored to policyholders’ needs.
Open insurance models, characterised by end-to-end processes, flexibility, and agility, are deemed essential for maintaining a competitive edge, particularly in property and health insurance.
The insurance industry is poised to prioritise sustainability in response to heightened ESG transparency and global sustainability awareness. Fadata predicts that increasing regulatory requirements, such as the EU’s Corporate Sustainability Reporting Directive, will compel insurers to integrate sustainable measures into their operations.
In 2024, the industry is expected to deliver on promises and implement green transformations, aligning with regulatory and self-imposed sustainability goals.
Anders Holm, Chief Commercial Officer at Fadata, emphasised, “The challenges ahead can only be met with greater digitalisation. Cloud, ecosystem approaches and AI can be the key enablers for entering a new and, above all, successful era in the insurance industry.”
As the insurance landscape transforms, companies that embrace these trends are likely to gain a competitive advantage, offering customers more personalised and innovative solutions. The year 2024 is poised to be a turning point as the industry evolves to meet the demands of a rapidly changing digital landscape.
