Banks are evolving towards a more agile and customer-centric model thanks to cloud technologies driven by AI | NTT DATA

Mon, 04 March 2024

Sustainability in the Insurance Sector Involves Adopting Artificial Intelligence and the Cloud

  • The book "On The Path to Sustainability: the Insurance Industry’s Foodprint" delves into the importance of developing sustainable practices and provides recommendations from the technology consulting firm.
  • It is a sector whose transformation is based on product innovation, holistic strategies, and campaigns to drive change.
  • These technologies enable progress in the Sustainable Development Goals (SDGs), continue to generate profits, and make better decisions, increasing human value. 

NTT DATA, a global digital business and IT services leader, has launched a new white paper on the insurance industry, “On The Path To Sustainability: The Insurance Industry’s Footprint”. This comprehensive analysis explores the significance of sustainability within the insurance sector and highlights ongoing initiatives driving positive change. The publication also presents the company's recommendations based on its global approach.

NTT DATA acknowledges that the present moment is an opportunity for insurers to advance their path toward sustainability. The insurance industry is undergoing a significant transformation as it embraces green initiatives and places sustainability at the forefront. By innovating products, implementing holistic strategies, and conducting educational campaigns, insurers are actively combating climate change.

The reduction of the carbon footprint involves the implementation of technologies such as generative AI, composite AI, or hyper-automation 

The sustainability landscape for insurers experienced rapid development last year, and the trajectory for 2024 suggests a continuation of this trend. In terms of climate action, there is anticipated to be a heightened emphasis on strategic approaches as insurers vie for emerging low-carbon opportunities. This entails moving beyond mere disclosure and target-setting to actively pursuing net-zero transitions through comprehensive planning and execution. 

Insurers are delving into foundation models, intelligent applications, and embedded insurance to provide customers with new ways of value through contextualized experiences, personalized services, and integrated insurance solutions.  

In developing this new white paper, we have leveraged the industry knowledge of our experts and their ability to deliver insights and solutions tailored to the current needs of the industry. 

Thus, Adaptive AI, industry cloud, and sustainable activities can be harnessed to revolutionize the financial model. These technologies can generate forms of revenue outside traditional core businesses or directly monetize data within regulatory frameworks. Generative AI, composite AI, and hyper-automation are creating the underlying capabilities that insurers need to augment human decision-making. 

According to NTT DATA, the challenges that the industry faces are: 

  • Clients across industries are facing growing challenges related to Environmental, Social, and Governance (ESG) factors within a fragmented and dynamic global regulatory environment. The insurance sector is one of the industries facing these same challenges.  As a trusted global leader in innovation, NTT DATA offers a comprehensive and forward-thinking service portfolio alongside extensive ESG expertise, supporting at every stage of the journey towards future-proofing operations and value chains, whether it involves ensuring regulatory compliance or realizing a net-zero vision. 
  • To ensure operations have the lowest possible environmental impact it is possible, while maintaining alignment with business objectives. And, through comprehensive training programs, organizations can effectively adapt and maintain sustainable cloud practices. 

The shift towards sustainable insurance represents a significant paradigm change within the industry, aligning financial practices with broader environmental, social, and governance (ESG) considerations. In a world handling the profound impacts of climate change and other sustainability challenges, the insurance sector's dedication to responsible and ethical practices is becoming increasingly critical.   

Download the white paper here.