The latest edition of the LBC Insurance Radar shows just how much the insurance industry is currently caught between time-tested stability and digital disruption. The report focuses on the transformation of established insurers, the rise of insurtech companies, the use of artificial intelligence in underwriting and reinsurance, and new regulatory approaches in the DACH region.
While established insurers continue to rely on financial strength and trust, insurtech companies are driving the industry forward with technology and automation. Podcast host Marco La Bella sees the hybrid model as the key to the future: the financial strength and customer trust of traditional providers combined with the speed and customer focus of digital challengers.
Swiss private insurance sector with high value added
The Insurance Compass Switzerland, published by the Swiss Insurance Association (SVV), projects that 195 insurance companies will generate 26.6 billion Swiss francs in value added in the private insurance sector by 2025. The industry’s productivity is thus two and a half times higher than the national average. Regulatory complexity remains a challenge, requiring a balance between regulation and international competitiveness.
AI in Reinsurance: Great Potential, Little Measurable Benefit
At the Reinsurance Rendez-vous Zurich, industry experts discussed the use of artificial intelligence in reinsurance. Despite strong growth in insurtech financing, only 30 percent of companies have so far actually achieved measurable added value from AI. Clear business objectives and an understanding of organizational change processes are crucial. In medical underwriting, the use of AI is already yielding significant efficiency gains.
Regulation in the DACH Region: Calls for a More Risk-Oriented Approach
A recent study examines the growing complexity of insurance regulation in Germany, Austria, and Switzerland. While the Swiss Solvency Test remains principles-based, Solvency II relies on detailed rules. The researchers recommend a stronger focus on risk factors as well as closer involvement of the industry in regulatory processes.
Underwriting Is Becoming More Digital
Through a new partnership, Adnovum and Sixfold aim to automate underwriting in the Swiss insurance industry using AI solutions. The collaboration is intended to facilitate Sixfold’s entry into the European market, while Adnovum will contribute its expertise in the digitization of business processes.
The Construction Industry in a “Risk Cocktail”
A study by Zurich warns of a convergence of risk factors in the construction industry: climate change, a shortage of skilled workers, and cyber risks are increasingly affecting insurability and, consequently, the financial viability of construction projects. Insurability is thus becoming a key indicator of the economic viability of construction projects.
Binci Heeb
Listen to and read: LBC Insurance Radar #14: AI, Climate, and Demographics
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