Digital insurance, connected and driven by generative Artificial Intelligence (AI), is making a milestone in the Insurtech market, according to a report prepared by the technology consultancy NTT Data. The report, 'Insurtech Global Outlook 2024,' delves into the three waves of innovation that are reshaping the insurance sector and also offers recommendations derived from its main findings.
NTT Data experts detail that, after reaching record investment figures in previous years, the sector experienced an adjustment in 2023, reflecting both the bursting of a bubble and a strategic adaptation to new global economic and political realities.
Three waves of innovation in digital insurance
The NTT Data report identifies "three waves of innovation" in the insurance industry: digital insurance, connected insurance, and generative insurance. The first ones, they explain, mark the entry of Insurtech companies into the market, while connected insurance leads the shift towards proactive prevention strategies and personalized approaches for the client. The latter, generative insurance linked to AI, they add, are helping insurance companies to generate high-impact models in society, while also complying with ethical regulations.
In fact, according to this work, cybersecurity and AI emerge as fundamental pillars for the transformation of the sector. The report highlights, for example, an investment of 640 million dollars in cybersecurity, with a growth in the number of transactions and an increasing focus on protection against cyber risks. In addition, artificial intelligence, with investments of over 50 billion dollars, is consolidating, according to the NTT Data report, as a disruptive force, paving the way for revolutionary solutions and business models.
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