by Fintech News Singapore May 24, 2024 In 2024, the insurance industry faces challenges caused by the rise in property and auto rates due to inflation, geopolitical uncertainties, and increasing regulatory scrutiny. Technology is emerging as a key driver for insurers navigating the turbulent landscape. A survey conducted by Gartner found that 58% of the insurance respondents have allocated increased funding for digital innovation.
This ongoing trend towards digitalization and business automation, accelerated by COVID-19, is projected to continue into 2024, with insurtech playing a crucial role in enhancing insurers’ performance through modern technologies. According to industry stakeholders and experts, a number of technological trends will be shaping the insurance sector in Asia-Pacific (APAC) and globally this year onwards. These trends include the use of artificial intelligence (AI)/machine learning (ML), natural language processing (NLP), and cloud-based services to improve operational efficiency and allow for hyper-personalization.
Embedded insurance is also projected to keep growing, driven by the fast pace of digitalization, changing consumer behavior, and more collaborations between traditional insurance firms and tech companies. Hyper-personalization of the insurance value chain In APAC, hyper-personalization is driven by evolving customer expectations for tailored experiences. Capco ’s recent insurance survey showed that nine in ten policyholders in Hong Kong (9.
