Finance Monthly - February 2022

29 Finance Monthly. Bank i ng & F i nanc i a l Se r v i ce s open architecture. For example, with health insurance like Vitality, premiums are flexible if customers make healthier lifestyle choices, like going to the gym regularly. It’s here that open APIs are vital to track and verify customers’ patterns, for example through connecting to customers’ fitness apps. In some parts of Europe, this has already begun to happen and will become even more prominent in 2022. Data management will be used at scale According to the Global Consumer State of Mind Report 2021 by Trūata, 76% of global consumers believe that brands need to do more to protect their data. And the need to have effective and efficient solutions to cope with GDPR, cybersecurity and the like, when managing data has never been more crucial. Insurance organisations will start to see huge benefits from using data platforms once they’ve moved their IT infrastructure to the cloud. Although there won’t be an explosion of new technologies in this area, we’ll see insurance companies deploying more effective solutions at scale and leveraging it to fulfil its true potential in 2022. Cryptocurrency payments will continue to surge Our financial ecosystem is currently undergoing an evolution and insurance organisations are developing and embedding into tech more than ever. Currently, some insurance players are building payment mechanisms by leveraging crypto solutions, while others offer cryptocurrency protection. For instance, in the US, auto insurance company Metromile announced it will soon let customers pay with cryptocurrency and even receive pay-outs in digital currency. In 2022, there will be even more growth in technologies that enable alternative ways of making payments. We’ll start to see smaller players in InsurTech provide instant payments that don’t even exist right now. It will still take time for there to be a global cryptocurrency market, but blockchain will continue to provide new opportunities that will impact the insurance industry. Working with other industries will remain important Insurance has played an important part in several different industries, but this will increase in 2022 for the automotive and healthcare industries specifically. In the automotive industry, many modern cars have various IoT sensors which collect data on how a car travels. The telematics of the data is embedded in the car, meaning data can be sent back to relevant organisations – such as an insurance company – if an accident were to occur. Over time, this technology and data will continue to grow and insurers will have a much more sophisticated approach. Here, AI will play a big role, and this will be driven by the insurance sector. There’s also a huge opportunity in the healthcare industry. There is a growing ecosystem of services and devices available to help individuals live a healthy life and recent findings from CCS Insight suggest that COVID-19 led to a 20% growth in smartwatches. As more products enter the market, having the right solutions to store and process data and ensure it’s compliant, will be key. 4 5 6 “In 2022, there will be even more growth in technologies that enable alternative ways of making payments.”

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