Without visibility and control of these critical processes, it will become even harder to manage the ever-growing range of risks and comply with regulations.
As a result, we can expect to see more insurers update, digitise, and centralise their payment processes.
The long-term view: proactivity and prevention
Over the long term, insurers face some profound challenges, not least through an ageing population, with those aged 80 and over forecast to increase three-fold between 2017 and 2050 rising to 425mn people.
By 2050, 33 per cent of the world's population will represent the over 50 age group – which is double the 1990 figure.
According to research from CapGemini, ageing populations will require insurance characterised by personalised financial planning, wealth transfer policies and elderly care solutions.
Generative AI will be used to improve customer experience and streamline claims, leveraging data and the cloud to create intergenerational products.
Unpredictable economic and environmental conditions will compel insurers to be more proactive to mitigate risk.
In its annual global insurance outlook Deloitte highlights the shift towards a more preventative approach in 2024, marked by the rise of personalised insurance plans.
Again, advanced analytics and AI in underwriting and risk assessment will support individualised offerings.
In challenging conditions, insurers must promote sustainability and leverage generative AI to fuel operational excellence.
While sound governmental policies will enable the economic stability and environmental sustainability on which we all depend at a macro level, technology will play a major role in helping insurers to better protect consumers and businesses every day.
Martin Sarjeant is senior vice-president, solution management, insurance and climate risk, at FIS
