The insurance industry up against the risks of the future
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The strategic challenges it faces in 2024 and the years to come will compel it to adapt and change radically.
The first major challenge for the sector is digitization, which is fundamentally transforming the way insurance companies interact with their customers. Technological breakthroughs such as artificial intelligence, blockchain and data analysis not only enable insurers to improve the profitability of their underwriting, but also contribute to greater product customization, increasingly tailored to the specific needs of each policyholder, who now expects a smooth multi-channel relationship with their insurer.
The second challenge pertains to the evolution of risks and their insurability, particularly those associated with climate change, cybercrime and pandemics. Insurers are under pressure in the face of these risks, which they find difficult to assess and price, and which require huge amounts of capital to underwrite.
The third crucial issue is that, in a world where geopolitical constraints are intertwined with socio-economic challenges such as inflation and declining GDP, insurance is the last line of defense for individuals and companies against the harmful consequences of these factors.
Despite the need for change, insurance has its limits. In many cases, it remains dependent on the intervention of regulatory authorities to safeguard its stability and ensure its long-term survival.
