3 Technological Trends/Bubbles in Insurance for 2024

In today's dynamic world, technology evolves faster than ever. Every week seems to bring a new "miracle" trend promising to revolutionize various industries, including insurance. But how can we distinguish real technological trends from temporary fads that may just be inflated bubbles?

New Opportunities and Challenges

In this article, I will discuss how to identify genuine technological trends and how they might impact the insurance sector. Specifically, I will focus on some examples of trends that have crossed the ocean to Europe and are therefore likely to be highly relevant for companies in the Czech Republic.

Advancements in artificial intelligence (AI), the Internet of Things (IoT), blockchain, and other technologies bring new opportunities to the insurance industry, but also new challenges. Not everything that glitters is gold. My goal is to help you differentiate between true innovations and fleeting trends so that you can better plan for the future of your insurance company.

Artificial Intelligence (AI) and Machine Learning

AI is everywhere. It can be frustrating, but it's unavoidable. I can't start the list of trends without it. AI has every right to be first! Insurance companies use AI and machine learning to analyze vast amounts of data to improve risk assessment processes, detect fraud, and personalize products for customers.

How exactly?

  • Risk Assessment: AI can analyze large volumes of data, including historical insurance claims, credit records, and geographic information, to determine client risk levels. This helps set appropriate premium prices.

  • Fraud Detection: AI can detect suspicious behavior patterns or transactions, aiding insurers in identifying potential fraud or incorrect claims.

  • Personalized Offers: AI can analyze customer data to propose personalized insurance products and offers based on their behavior and preferences. This includes creating tailored insurance packages for drivers based on their driving habits.

  • Chatbots: Many insurance companies already use chatbots. The next challenge will be further automation.

  • Automation of Chatbots and Customer Service: AI can quickly process insurance claims based on documents and photos provided by clients, reducing processing time and enabling faster payouts.

These are topics we've been discussing for several years. But is 2024 the year they become the new norm in Europe or even in the Czech Republic? Let's look at some inspirational examples from abroad.

Haven Life: Haven Life is an insurance company that uses AI and machine learning to quickly and easily evaluate life insurance applications. In 2023, they received the Life Insurance Direct Marketing Association (LIDMA) Innovation Award for this.

Lemonade: Lemonade is an insurance company that uses AI and chatbots for a quick and easy insurance application and claims process. Recently, Lemonade announced a groundbreaking innovation in collaboration with Mitchell/Enlyte Company to use AI for car insurance policy management, documentation, and automated claims processing.

A very interesting complex of products is offered by Shift Technology, which designs AI solutions for a wide range of insurance use cases.

It's not just about American insurance companies.

Aviva: The British insurer Aviva invests in AI technologies to improve customer service and speed up claims processing.

Swiss Re: The Swiss insurer uses AI for risk analysis and developing innovative products.

Zurich Insurance Group: This company has implemented a solution that reduces the time to process property insurance claims to under 24 hours. More details can be found in this article from February this year.

Internet of Things (IoT)

The IoT has seen significant adoption by insurance companies, and the ride is far from over. Connected IoT devices can monitor data about insured objects (e.g., cars, homes) and enable insurers to obtain more accurate information about risks and provide tailored insurance.

  • IoT devices in cars: Devices like telematics sensors collect driving data, including speed, turns, braking, and other driving aspects. Machine learning can analyze this data to help insurers identify risky driving patterns. Based on these analyses, clients can be offered personalized rates based on their actual driving behavior.

  • IoT sensors monitoring property conditions: Sensors for water taps, heating, air conditioning, and more can analyze data to identify potential risks like water leaks or heating failures and alert clients.

  • IoT devices in health insurance: Wearable sensors and monitoring devices can track clients' health status. Machine learning can analyze this data to predict health risks and treatment costs.

For example, the American insurer Progressive uses the Snapshot program (launched in some European countries), allowing clients to monitor their driving habits through telematics sensors. Based on this data, clients can receive discounts on premiums.

More examples include:

Insure The Box: A British insurer specializing in young drivers, using telematics devices to monitor driving habits.

DrivePlus program by Direct Line: Similarly set up to monitor driving behavior.

Allianz: The insurer also uses telematics insurance programs that allow clients to monitor their driving and receive premium discounts based on their driving habits.

Generali's Vitality program: This program combines activity tracking with a healthy lifestyle program, allowing clients to monitor their health habits and receive discounts.


Blockchain promises a revolution in insurance, but it’s essential to remain skeptical. It hasn’t yet delivered the expected breakthrough, and while I'm a supporter, it’s still somewhat of an inflated bubble. However, we should watch closely to see if its potential truly exceeds expectations.

Blockchain technology can ensure transparency and security in insurance policy management and claims processing. It might finally lead to the emergence of parametric insurance or microinsurance in the Czech market.

One noteworthy example is B3i (a consortium of insurers around Zurich Insurance Group) exploring blockchain use in insurance, including vehicle damage processes. However, according to the latest available information, they have gone bankrupt.


The trends in insurance for the coming years are clear. The most important factors will be the courage and determination of insurers to adapt to the new world. Seeking new approaches has always been, and will continue to be, key to success. I wish all insurers the best of luck in these times of change.

Petr Růžička

CX Consultant Lundegaard