Technological developments increasingly impact the world. The following three trends have the most impact on a.s.r.'s operating environment.

• Digitalisation and big data continue to drive regulatory changes to balance innovation, customer protection, and financial stability.

• Artificial intelligence (AI) promises to deliver speed and simplicity in business processes and insurers are experimenting and implementing cost-efficient technologies at a faster pace.

• Cyber security and cyber threats remain persistently high, which resulted in new or renewed cyber and information security requirements, as well as data-focused legislation, including the Digital Operational Resilience Act (DORA) and the European Artificial Intelligence Act (AI Act).

Impact on a.s.r. and its stakeholders

Emerging technologies and digital transformations are key for competitiveness, enabling better services and improved efficiency, and offering more personalised solutions to the customer. Digital ecosystems such as embedded insurance offer new opportunities for customer reach and income diversification. AI’s potential in the insurance industry includes enhanced risk predictability, improved client journeys, and process optimisation. For customers, there are both advantages and disadvantages to technological developments. Ranging from easier access to products and better customer service on the one hand, to increased risk of cybercrime on the other¹. Customers might also feel overwhelmed or dissatisfied with the shift to digital services, which in turn might impact the customer experience.

New technology trends and legislation – ranging from AI to cyber security - present both opportunities and threats to a.s.r. Insurers are developing and implementing cost-saving technologies in areas such as claims management, underwriting, risk prediction and call centres. However, increased cloud presence and data sharing heighten cyber risks, such as data leaks, hacks and social engineering. The DNB highlights that cyber threats to the financial sector are growing and are linked to heightened geo-political tensions, which have made financial institutions more vulnerable to cyberattacks².

a.s.r.'s response

Digitalisation and AI enable a.s.r. to continuously offer innovative and high-quality services to customers, thereby strengthening its position in the insurance market. Specifically, the customer contact strategy aims to create a consistent, seamless experience for all customers. Including the development of a chatbot to find relevant policy articles for claim handlers and provides draft answers to customers. Another example is a.s.r.'s Health’s digitalisation strategy which has made significant progress in both digitalisation and the use of AI. See section 4.2.4.

Cyber resilience is crucial for maintaining customer trust and supporting a.s.r.'s customer-oriented strategy. a.s.r. continuously monitors and assesses cyber and information security risks, implementing control measures both internally and with IT suppliers. a.s.r. collaborates with financial institutions and public bodies, such as the National Cyber Security Centre (NCSC) and the Digital Trust Centre (DTC), to bolster the financial sector’s cyber resilience. See section 3.1.3.2.

To ensure adherence to international standards and new legislation, a.s.r. invests in prevention, detection, and response technologies to enhance cyber resilience and ensure secure digital services for customers. To improve information security awareness, a.s.r. employs tools like gamification and phishing campaigns. See section 5.4.3.

• ¹Source: BCG (2024)
• ²Source: DNB (2024)