Digitalisation reshapes Europe’s insurance and pensions landscape
In an era where financial security can feel uncertain, digitalisation is rewriting the rules of how Europeans engage with insurance and pensions. Tools powered by artificial intelligence are involved in claims processes and being used to work through complex choices, while online platforms make it easier than ever to compare products and track retirement savings. But as digital tools promise convenience, they also risk leaving some consumers behind, highlighting a growing divide in access, understanding, and trust.
The European Insurance and Occupational Pensions Authority (EIOPA) delves into these issues in its 2024 Consumer Trends Report, released this week. The report highlights digitalisation’s transformative impact on the insurance and pensions sectors, while also pointing to persistent challenges like Europe’s widening pensions gap. Only 42% of EU consumers are confident they’ll have enough money for retirement, with participation in supplementary pensions remaining low—especially among women.
AI is improving processes and cutting costs in insurance, but concerns remain over its lack of personalisation, opaque decision-making and fairness in pricing. Meanwhile, interest in sustainability-focused products and cross-border insurance sales is growing, though trust and accessibility continue to vary.
Structured data will play an important role in addressing these challenges and hopefully ensuring AI models are built on useful data and therefore optimised for the insurance and pensions industries. Reliable and comparable reporting is critical to ensuring transparency, supporting supervisory activities, and fostering trust in financial products as digitalisation continues to reshape the market.
Read the 2024 Consumer Trends Report here.
