In the insurance sector, trends related to technological innovations revolve around six main areas that should be strengthened in 2023.

Digitalisation

The evolution of consumption patterns and interactions between customers and companies represented by digitalisation obliges companies to change their organisation and redesign their processes to guarantee an equivalent quality of service, whatever the channel, and to limit breaks or inconsistencies.

On a more technical level, our information systems are evolving to integrate three major trends:

—platform architecture, making it possible to reuse the technical or functional components of a modular information system in the various digital communication channels

—the use of external cloud-type solutions taking into account the risk-benefit ratio (“cloud serious” strategy rather than “cloud only” or “cloud first”)

—advanced data analysis (artificial intelligence, deep learning, analytics, etc.) considered from a more pragmatic angle (precise business objectives, consideration of the volume of data required, its quality and data protection)

Like the evolution observed in the banking sector, I am convinced that the year 2023 should see an acceleration in the adoption of cloud solutions, boosted by an increasingly wide offer from publishers and an awareness public authorities that the insurance sector cannot remain excluded from this source of innovation and competitiveness.

Cyberthreats

This threat is growing for three reasons: the structuring of the cyberthreat; hackers today acting like real criminal organisations; and the increase in the attack surface that goes hand in hand with the digitalisation and openness of our systems of information.

All companies are concerned and must put in place a cybersecurity strategy which is not limited to the acquisition of expensive tools (such as firewalls) but also covers processes and user awareness, and which must be reassessed non-stop.

Regulatory

Regulatory obligations with short deadlines are multiplying and are imposed on companies of all sizes, whether or not they are supported by a group.

In November 2022, the new Dora standard will give companies 24 months to carry out a substantial programme of measures aimed at ensuring IT resilience.

While their objectives are laudable (informing policyholders, data protection, solvency guarantees, etc.), they weigh on the ability of our companies to carry out modernisation projects or innovations for our customers.

New ways of collaborating

Accelerated during the pandemic, hybrid work modes have become the norm. In 2023, a balance will have to be found between the many dimensions to be considered, especially since the expectations of employees, particularly the youngest, are high: personal/professional balance, environmental impact, taxation and operational functioning of companies.

Recruitment

The recruitment and retention of competent profiles in the field of new technologies, which are still rare in Luxembourg, are challenges that local players and the government will continue to meet together by pursuing the initiatives (training, coding schools) that are being put in place.

Environmental impact

Finally, the integration of the analysis of our social and environmental impact in our development strategies will be essential in view of the growing consideration it meets with our customers.