Source: Finance Derivative

Authored by Samiul Chowdhury, Principal Actuarial Consultant, RNA Analytics 

The insurance industry is undergoing a significant transformation, driven by rapid advancements in technology. From property and casualty to life insurance, the role of digital solutions has never been more important. Today, it’s almost impossible to imagine a successful, compliant insurance business without technology at its core. 

But how exactly is technology reshaping the insurance landscape? And what does it mean for the future of actuarial work, AI, and cyber risk? Let’s explore. 

The Essential Role of Technology in Modern Insurance 

Technology is the cornerstone of the successful modern insurance business – whether property, casualty or life. It’s no longer optional—it’s essential! Operating a successful and compliant insurance company today without the help of software solutions would be a real challenge. Whether it’s managing customer data, meeting regulatory demands, or assessing risk, technology is at the heart of everything modern insurers do.  

In recent years, regulatory compliance has been a top priority for (re)insurers across the globe, with IFRS 17 probably the number one focus. The new accounting standards are highly complex, and their implementation has forced many insurers to rethink and redesign their entire approach to financial reporting and infrastructure. However, this challenge has also been a catalyst for technological innovation.  

One of the most significant changes brought about by IFRS 17 is the integration of traditionally siloed such as functions such as actuarial, finance and accounting functions. This alignment gives insurers unprecedented insight into opportunities and risks, enabling them to make more informed decisions. Beyond compliance, accuracy and extensive flexibility, this integration offers insurers a chance to enhance accuracy, achieve greater flexibility, and gain a deeper understanding of their financial landscape. 

How AI is Changing the Actuarial World 

Much has been said aboutArtificial Intelligence (AI) and its potential to disrupt industries. In insurance, AI is already proving to be a game-changer, especially in actuarial work. With the right approach, AI holds great promise of making processes smoother and bringing faster, more accurate decision-making into play. 

However, AI is not here to replace actuaries. Instead, it enhances actuaries’ roles by automating their routine tasks such as data pre-processing, model fitting, and report generation. This automation allows actuaries to focus on more strategic tasks, giving them a more central role within the organizations. 

Meanwhile, AI modelling introduces new sources of uncertainty. Actuaries must understand the limitations and assumptions behind the AI models they are using. It’s important to ensure that these are fair, unbiased, and ethical —particularly when it comes to pricing and underwriting. This means actuaries will need to pick up new skills, especially in data science and programming languages like Python and R.  

In other words, AI offers actuaries the chance to work more efficiently and strategically, but only if they are prepared to navigate the complexities it brings. 

The Growing Challenge of Cyber Risk. How Do Insurers Keep Up?  

Cyber risk has emerged as one of the most significant threats insurers face today. Cyber insurance is not the same as it was twenty years ago. The policies were relatively simpler, and insurers didn’t have as much data or experience to rely on. Today, they are more complex, reflecting the increased scale and sophistication of cyber threats. 

As cyberattacks have increased, so has our ability to model and understand them. Insurers have gained more data over time, which has allowed them to get a better grip on the risks involved. However, here is the thing: technology evolves, and so do the threats. Whether it’s a data breach, ransomware attack, or even non-malicious technical failures like the recent CrowdStrike outage, the risks are more systemic and far-reaching than ever.  

Looking ahead, as we enter the Web3 era where information becomes ever more interconnected and managed by semantic metadata, we’ll have a complete set of new vulnerabilities. Business models will shift, and with that, the risks insurers will need to cover. By 2044, cyber insurance policies will probably look quite different from what we see today. 

Conclusion 

The insurance industry is at a turning point, driven by the rapid adoption of technology and the increasing complexity of risks like cyber threats. To stay ahead of the curve, insurers need to embrace AI, data-driven decision-making processes, and advanced risk models. 

Source: Finance Derivative

Written by Fernando Costa-Cabral, SVP Branded Payments, and Ishan Vaid, VP Core Features, at Paysafe.

Throughout 2025, we’ll see two seemingly opposing payment methods – eCash and digital wallets – further reshaping how consumers manage their money. While cash – and future access to it – is still critically important for consumers, digital payments are undergoing a huge transformation.

eCash will continue to bridge the digital divide by ensuring consumers can use physical currency to buy goods and services online. As a result, businesses will leverage it as a democratizing force to promote financial inclusion and serve diverse consumer segments.

Digital wallets also have a major role to play in the evolving payments landscape, with 32% of consumers reporting to have increased their use of wallets in 2024. A notable development is the rise of brand-owned wallets, as businesses outside the financial services sector seek to establish closed-loop ecosystems to control and enhance the customer experience.
 

With a view to the year ahead, here is how eCash and digital wallets will evolve throughout 2025.

Bridging the digital divide with eCash

Even in today’s digital world, cash plays a vital role in consumer finances. Recent research from Paysafe has revealed that 63% of consumers harbor concerns about losing access to cash, while 44% want the option to buy items online and pay in cash at a brick-and-mortar store.

This preference stems from the unique advantages of cash: it provides tangible financial security, enables precise spending control, and helps users avoid the often-hidden costs commonly associated with credit-based payments. Across geographies, cash remains essential for reducing financial anxiety and ensuring reliable transactions.

Despite its enduring importance, cash has largely remained on the sidelines of the recent payment revolution. Traditional cash-based operations continue to be cumbersome and time-consuming – whether it’s depositing physical money into a bank account, coordinating international cash transfers, or attempting to set up installment payments. Furthermore, the retail sector has generally overlooked cash users when developing modern consumer incentives such as cashback programs, buy-now-pay-later (BNPL) schemes, or subscription-based services, creating a noticeable gap in the market.

That is all now changing. This year, eCash will solidify its position as the right solution to bridge this divide between physical currency and our increasingly digital economy – making cash more relevant and accessible in the modern world. In the year ahead, eCash’s progression will materialize through three main developments: enhanced security measures, value-added features, and a significantly improved user experience. With these improvements, eCash can transform traditional cash into a simple and secure payment method with the same core benefits that make cash valuable to many people.

Digital wallets will diversify the payments landscape

In a similar vein to eCash, digital wallets are diversifying the payments landscape, with non-financial brands increasingly venturing into the territory once dominated by incumbent financial service providers. By acquiring their own digital wallet solutions, these brands are reducing their dependence on external financial institutions and enhancing the payment experience.

The trend toward brand-owned wallets has already gained traction in Asian markets, with e-wallets now being offered by ride-hailing apps and e-commerce platforms – and we anticipate a significant uptake in markets like the UK over the coming year. Specifically, retail chains, gaming platforms, and logistics companies are all exploring how digital wallets can streamline their payment processes, strengthen customer loyalty, and deliver greater control over the user experience.

There’s particularly strong momentum building around white-label wallet solutions, which provide businesses with a sophisticated approach to payment integration. These solutions enable brands to incorporate advanced wallet functionalities directly into their existing platforms while maintaining complete control over their user interface and experience. This development aligns with a broader strategic shift we’ve observed across various sectors – from gaming and retail to mobility services – where brands increasingly want a closed-loop ecosystem that they manage.

In 2025, we can anticipate four key evolutionary trends in the digital wallet space. First, we will see even more seamless integration of wallet functionality into non-financial platforms, allowing users to complete transactions without leaving their preferred brand’s ecosystem. Second, there will be significant advances in real-time currency conversion capabilities and multi-currency wallet features, catering to the growing demands of global commerce and international travel. Third, we can expect enhanced instant settlement capabilities, supported by faster payment rails that align with contemporary consumer expectations for immediate transaction processing and gratification. Finally, there will be an increased emphasis on sustainability, with digital wallets incorporating eco-friendly features such as carbon footprint tracking to meet the growing consumer demand for environmentally responsible financial services.

While these two technologies and their respective journeys aren’t necessarily joined at the hip, as 2025 unfolds both eCash and digital wallets will help to create a more accessible and customer-centric financial system. This evolution isn’t about choosing between cash and digital – it’s about seamlessly bridging both worlds, giving consumers and brands greater control over how they pay and get paid.

By Christina Kemper, Vice President of International at Armis

Almost every single organisation, large or small, is acutely aware of the need to implement robust security measures. However, this is easier said than done. As the threat landscape continues to evolve, only heightened by tools such as AI, it can be difficult to stay ahead and ensure appropriate security measures are in place. Furthermore, there are a lot of security tools out there, and many organisations have tried to implement security measures and are now overwhelmed with an influx of information trying to figure out how best to manage it.

However, though it may not be the easiest task, it’s certainly one worth doing right. So, as we look ahead to 2025, what are the main trends that organisations need to be aware of and how can they use this knowledge to stay protected?

1. Nation-state threats will worsen

The global geopolitical landscape is increasingly influencing the cyber threat environment. Nation-state actors, motivated by political or strategic goals, are launching more sophisticated cyberattacks which target critical infrastructure, government agencies and private enterprises. These attacks are often highly targeted and can have devastating consequences that disrupt society and economies.

In 2025, we can expect an uptick in cyberattacks from nation-state actors as global tensions rise. The UK, like many other countries, has already experienced the consequences of these kinds of attacks – and new technologies such as AI and quantum computing are only making things more complex. Just last month, UK minister, Pat McFadden, warned that Russia and other adversaries of the UK are attempting to use AI to enhance cyber-attacks against the nation’s infrastructure. Worryingly, however, over half (52%) of IT leaders in the UK do not believe the government can protect its citizens and organisations from cyberwarfare.

As we move into the new year, we will increasingly see nation-state attacks move away from the direct theft of sensitive information and focus more on destabilising economies, disrupting services, or causing widespread panic. When it comes to threats such as these, catching the early warning signs is vital. Organisations need to ensure they are using proactive measures to detect and prevent threats before they materialise.

2. Supply chain attacks will continue to cause major disruption

For the last few years, it has become increasingly evident how vulnerable organisations are to supply chain attacks. Attacks on third-party vendors and partners have been responsible for some of the highest-profile breaches this year, such as the Synnovis and the Network Rail attacks. Additionally, the estimated global cost of supply chain attacks is expected to reach $60 billion in 2025.

As such, supply chain security is now a priority for many businesses, particularly as they depend more on external vendors for critical services and products. This broadens the scope of cybersecurity efforts beyond the organisation itself to include partners, suppliers, contractors and service providers. As such, organisations need to view their cybersecurity strategy holistically. It’s no longer enough to adopt a security posture that focuses solely on internal assets – businesses must extend their scope to the entire ecosystem.

3. Regulatory compliance becomes more complex

The importance of regulatory compliance in cybersecurity has shifted from being a mere checkbox exercise to a fundamental aspect of any organisation’s strategy. And, with new regulations on the horizon, especially in the UK and Europe, businesses are now faced with even more stringent requirements.

For example, the EU’s Network and Information Systems Directive (NIS2) and Digital Operational Resilience Act (DORA) are pushing organisations to establish more robust cybersecurity frameworks. However, meeting these compliance requirements is not just about avoiding penalties. Organisations that invest in comprehensive cybersecurity programs, those that go beyond compliance and look to proactively protect against risks, are better positioned to maintain their reputation and trust among customers.

Additionally, as the number and complexity of regulatory frameworks continue to increase, the demand for compliance-as-a-service solutions – which help organisations navigate the complex landscape of local and international regulations – will increase. These services can offer businesses tailored solutions that simplify the process of ensuring adherence while also enhancing their overall cybersecurity posture.

4. Solution consolidation will be vital

Lastly, in response to the growing complexities of the threat and regulatory landscape, another trend we should expect to see in 2025 is the move toward single-platform solutions. Currently, organisations are heavily relying on point solutions designed to address specific security concerns, such as firewalls, anti-virus software and intrusion detection systems. However, as the threat landscape grows increasingly complex, the demand for integrated solutions will increase and it’s important that organisations have the ability to easily work through the influx of information that is out there with single-platform solutions.

Looking ahead

When it comes to cybersecurity, playing catch-up is not an option. In 2025, UK organisations need to ensure that they are staying one step ahead of bad actors. By being aware of the current trends in the threat landscape, businesses can make better-informed decisions regarding their cybersecurity posture. The threat landscape is always evolving, but organisations that stay informed, adopt a proactive cybersecurity approach, and make the most of the latest technologies will be far better positioned to protect themselves.