Advancing digital transformation in insurance
Advancing digital transformation
Digitalisation opens a new dimension to tackle the risks facing society. While the benefits of digitalisation are undeniable, it comes with its own risks that must be mitigated and insured against if these benefits are to be fully realised. The roles of trust and governance can't be overemphasised if digitalisation is to achieve its full potential in closing protection gaps and making society more resilient.
With its vast repository of data and extensive experience in risk modelling, the insurance industry is uniquely positioned to leverage advanced analytics and artificial intelligence (AI) to make more informed decisions in detecting, mitigating, and predicting risks. Smarter risk insights form the core of our development of leading digital solutions to prevent and mitigate global risk, including new digital and cyber threats.
Despite automation and augmentation for the future through AI in insurance, having a human in the loop remains critical for all innovations. We believe for digital technology to be truly effective; it must be coupled with trust and ethics. As a reliable risk partner for more than 160 years, Swiss Re is committed to sustainable digitalisation and mitigating its increasing risks.
Further Information
Opportunities of digitalisation
AI can impact and add value to the entire insurance value chain, bringing significant benefits to customers. For example, AI can help automate routine tasks, extracting insights from vast datasets, improving portfolio management and risk assessment, and streamlining claims and submissions processing. Swiss Re has been using advanced analytics and narrow AI successfully for a number of years. In 2024 we will roll out the pilots of our first innovative solutions augmented with Generative AI.
The risks of digitalisation
With the growth of digital ecosystems and interconnection, business interruption and cyber vulnerabilities rise, threating also data privacy and intellectual property.We see a huge challenge with the accumulation of risk. The concentration of cloud services exacerbates the risk of large losses due to accumulation effects.
The use of AI carries inherent risks, such as issues related to data protection and confidentiality, intellectual property infringement, biased decision making, information security, and cyber threats. Swiss Re sets an industry standard with its mature governance processes and standards for the use of data and data analytics, including Generative AI.
New digital re/insurance business models
The digital economy sparks new business models and derives value mostly from services and intangibles. This creates changes to insurance protections needs, as well as opportunities for new digital insurance models/solutions:
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Ecosystem partnership solutions that can be scaled with Application Programming Interfaces (API). and end-to-end tailored customer solutions (UX),
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Risk mitigation/prevention solutions modelling future risk scenarios,
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Automated solutions (automated/dynamic underwriting/claims and customer/client interfaces with LLM functions).