The development of the insurance industry in 2024 is gaining momentum, i.a. thanks to technological progress and changing consumer needs. We’ll see what this year will be like in 12 months, but we can probably predict some quite obvious events today.
Digital Transformation in Insurance
The year 2024 brings a continuation of digital transformation in the insurance industry. We expect further development and implementation of technologies such as artificial intelligence (AI) and machine learning. These innovations aim to improve processes such as risk valuation, personalization of offers and automation of customer service. The use of AI to predict customer trends and behavior will be key, allowing for the creation of more tailored and competitive insurance products.
Insurance Tailored to Individual Needs
In 2024, insurance tailored to the individual needs of customers will become increasingly popular. Ultimately, this is what the Insurance Distribution Act already requires today, in terms of analyzing the customer’s demands and needs. Dynamic risk modeling and flexible insurance plans (which should start to appear in 2024) will enable customers to adapt insurance to their changing life circumstances. The development of technology will also have an impact on health and life insurance, where a larger amount of data will allow for the creation of more precise offers.
Sustainable and Ecological Insurance
Issues related to climate change and sustainable development will have an increasing impact on the insurance market. Environmental insurance products, such as extreme event insurance and sustainable investment insurance, will become more common. We can also expect an increase in the popularity of insurance for companies operating in accordance with ESG (Environmental, Social, and Governance) principles.
Development of Cyber Insurance
In response to growing cyber threats, the cyber insurance market will develop dynamically. It will include not only the protection of personal and corporate data, but also protection against attacks on critical infrastructure. Insurers will focus on offering comprehensive solutions that combine financial protection with preventive and incident response services.
Development of Health Insurance
Health insurance in 2024 will be unstoppable. The changing social structure, increasing customer awareness, expectations towards employers, all this will result in further, intensive growth of this type of insurance in the market. The development of these technologies will allow for better access to health care and faster response in the event of emergencies. In addition, the growing interest and demand for protection in the area of mental health will result in insurers starting to offer products focusing on support in this area as well.
Regulatory and Compliance Challenges
In 2024, the insurance industry will also have to face growing regulatory challenges, especially in the context of the implementation of Recommendation U, the proper implementation of tools in the area of analysis of customer demands and needs and the still planned, but probably inevitable, new distribution guidelines for insurance companies. Insurers will be forced to adapt their practices to these regulations, which may also require investing in advanced IT systems.
Summary
The year 2024 brings many changes and novelties in the insurance industry. From digital transformation, through the individualization of offers, to the development of ecological and cyber insurance – this sector seems to be well on the way to adapting to contemporary challenges and customer needs. However, it will be crucial to maintain a balance between innovation and securing customer interests and data.