The challenges associated with digitization in the insurance sector discussed at the "Insurance in the Digital Future" Conference, in Ljubljana
In four sections, domestic and international experts discussed the challenges associated with digitization in the insurance sector, with a particular focus on consumer protection, cyber security, and the future of digitization. Participants in the conference agreed that digitization would significantly improve the further development of the insurance sector. They also emphasized that digital business exposes insurance companies and consumers to new risks, but that at the same time it presents a number of new opportunities for the insurance sector.
Acting Director of the Insurance Supervision Agency, Gorazd CIBEJ, stressed in his introductory speech that the insurance industry is constantly innovating in order to better meet the evolving needs and requirements of its customers. He added that technological developments significantly change consumers' expectations of insurance providers, and the digital environment allows both established companies and new start-up companies to make market innovations much faster and better meet those needs. "In the coming years, European insurance companies will be expected to increase customer expectations for digital access and transparency, especially for car and home insurance. Due to the rising wealth and influence of the Millennial generation, insurance companies will have to concentrate on this new demographic in order to continue to influence change in the value chain of insurance companies - from the development of products and the conclusion of policies to back-office and distribution operations on the web.
One of the main challenges associated with digitizing business is the protection of consumers and the question of how to find the right balance between regulation and self-regulation, as well as transparency and accountability. Properly structured consumer protection mechanisms benefit the insurance sector as a whole and can also influence the insurance penetration. In connection to digitization, the topic of cybernetic risks, which, on the one hand, originate from the use of digital services, and on the other hand, present the opportunity for new forms of insurance products to protect against such risks.
The discussion further focused on current trends and developments in artificial intelligence, data analytics, and financial technologies. In the area of the development of artificial intelligence, over the past ten years we have experienced a real explosion of interest in data mining, big data, and deep learning. The lecturers presented the developments in the field of artificial intelligence as well as practical examples of using digital solutions in the financial industry.
The conference ended with a round table dedicated to the issue of future trends and the development of digitization in the financial sector.