Technology and Insurance

Abstract

The chapter highlights how digitalisation is destined to deeply modify the whole financial and insurance ecosystem, impacting all points along the insurance value chain and consequently re-shaping the competitive landscape. It focuses on how the increasing collection of data through the new digital technologies permits more granular underwritings in risk insurances. Smart analysis techniques, predictive modelling and connected telematics devices allow insurers to create products and set premiums based on actual risk profiles rather than on general standards. The delivery process is also affected by the new technologies. This is also taken into account by the regulatory framework of the Directive 2016/97/EU, Insurance Distribution Directive, which is soon to be introduced at a European level.