The insurance sector is undergoing a profound digital transformation, driven by an investment of over $50 billion in artificial intelligence, according to the “Insurtech Global Outlook 2024” report by the technology consulting firm NTT DATA. This investment is aimed at optimizing and simplifying the industry, empowering the creation of innovative business models that are changing the way companies interact and meet the needs of their customers.
The study highlights three waves of innovation that are redefining the sector. First, insurance companies are leading the digitization to achieve a more profitable and sustainable operation. Second, they are implementing proactive prevention strategies and personalized customer service through real-time data analysis. Finally, the third wave, driven by Generative Artificial Intelligence, is enabling the development of business models that not only comply with strict regulations and ethics, but also have a high social impact.
Despite a recent decrease in funding, the report interprets this adjustment not as a decline, but as a recalibration of investor expectations in the face of a changing economic and political environment. Artificial intelligence stands out as an essential disruptive element, fostering the development of revolutionary solutions for the sector.
Moreover, cybersecurity is becoming another critical component for Insurtechs, with significant investment aimed at protecting against cyber risks and adopting new technologies. Companies focused on cybersecurity have seen a substantial increase in funding, reflecting the growing importance of this aspect in the sector.
Experts from NTT DATA, such as Ines Eusebio and Bruno Abril, emphasize the unique opportunity that the Latin American and European insurance sectors have to leverage emerging technologies to improve their competitiveness and anticipate consumer needs in an ever-evolving market.
Finally, Gabriel Ciaburri from NTT DATA Argentina highlights how Insurtechs, after an initial phase of heavy investment, are now facing pressure from investors to demonstrate results without losing the ability to innovate. Insurtechs must not only continue to adapt to disruptive technologies to reduce costs and improve the customer experience, but also stay ahead in an increasingly competitive market, especially with the emergence of generative AI as a new horizon of innovation.