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 Kevin Brundish, CEO of LionVolt 

As we look toward the future, the global wearables market is projected to reach $265.4 billion by 2026. This growth is further fuelled by advancements in AI, which promise to enhance the functionality and performance of wearable devices. For instance, in the healthcare industry, artificial intelligence (AI) may use the massive volumes of data gathered by wearables to communicate with patients and offer precise diagnosis, advice and support.

Despite the remarkable features and capabilities of modern wearable devices, battery life remains a significant challenge. Most smartwatches, for example, still struggle to last a full 24 hours, making it difficult for users to monitor sleep patterns and daily activities continuously without frequent recharging. With the use of AI and applications that demand increasing amounts of data, this limitation prevents wearables from becoming fully integrated tools in our daily lives.

Advances in battery technology are looking to address this issue. At LionVolt we are working on a 3D lithium-metal anode technology which helps to significantly enhance lithium-ion battery performance.

Smaller Batteries, Same Energy 

The most significant advantage of lithium-metal anode batteries is their ability to provide the same energy from a smaller size battery. This gives designers greater freedom and opens new possibilities for wearable technology by enabling the miniaturisation of existing wearable designs. In addition, lithium-metal anodes may allow manufacturers to lower overall prices by moving away from costly cathode materials they use now, to cathode materials being used in automotive industry, where there is a cost advantage through economies of scale. 

Higher Energy Density and Faster Charging Times 

When we compare conventional lithium-ion batteries to lithium-metal anode battery technology, the lithium-metal anode batteries have a superior energy density. For users of wearable devices, this translates to longer usage periods and fewer charging interruptions as well as faster charge times, which minimises downtime and guarantees that gadgets remain operational when needed.

Enhanced User Experience 

Fast charging periods and increased energy density which is key to longer usage periods improve wearable technology’s overall performance, enabling consumers to maximise its benefits without sacrificing dependability or quality

Lithium-metal anode powered batteries also improve wearable gadgets’ dependability and durability. Users can count on their wearables to function reliably day or night and to enable a variety of applications, such as health monitoring and exercise tracking. These batteries are made to endure the demands of regular use, guaranteeing that gadgets continue to be reliable and operational for long stretches of time. 

The use of the highest performing materials in wearables typically comes at a high cost. However, with the advancement of new technology, it becomes possible to utilize more widely available and cost-effective anodes without compromising on performance. This approach allows for the efficient operation of wearables while also offering a cost benefit, addressing the economic challenges associated with high-performance materials.

Overcoming Adoption Barriers 

One of the key reasons for the slower adoption rate of consumer wearables is the charging rate. The utility of these products can be increased, along with their consumer appeal by extending their battery life and charging timeframes. The advantages of the next generation of batteries—faster charging, longer battery life, and improved device dependability—can greatly accelerate wearables’ uptake.  

Advancing Wearable Technology 

By tackling the crucial problem of battery duration, coupled with a fast charge capability, lithium-metal anode technology would propel the wearables business forward. An emphasis on sustainability and safety guarantees that these developments help both consumers and the environment, while our smaller, more efficient batteries provide designers the freedom to develop creative new gadgets. 

Transforming the Landscape of Wearable Technology

Lithium-metal anode battery technology brings numerous benefits to the consumer wearables sector: 

• Longer Battery Life: Wearable devices will last much longer on a single charge, addressing a significant pain point for users. 

• Increased Monitoring Time: Faster charging means users can monitor their health and activities for extended periods without interruption. 
• Reduced Equipment Needs: With longer battery life and faster charging, users will need fewer duplicate products to cover charging times, simplifying their tech ecosystem.

Imagine being able to monitor your heart activity and more to manage health conditions without worrying if your device has enough power? With improved battery longevity, users can rely on their wearables for consistent health insights, making it easier to identify trends and make informed lifestyle changes. This seamless integration into daily life not only promotes better health management but also empowers users to take proactive steps towards their well-being.

These enhancements not only improve the user experience but also pose the potential to increase the adoption rate of consumer wearables.

Looking Ahead: Shaping the Future of Wearable Technology 

Wearables have a bright future because of AI and cutting-edge battery technology, which will greatly enhance their usability, dependability and functionality. The next generation of batteries are revolutionising the wearables market and paving the way for a new era of technological innovation by emphasising sustainability, increased energy density, quicker charging times, and improved safety features.