InsurTech4Good.com Weekly Newsletter – #19, 2025

What a week it was for crypto, huh? But a lot is also happening in InsurTech.

This week’s edition brings together several developments that reflect the pace—and purpose—of change in our industry. From potential use cases that might emerge under Europe’s FiDA proposal to a newly launched AI Liability product.

We also look at insurance’s growing role in climate resilience, the rise of autonomous AI agents, and how policymakers are responding to the generative AI wave.

Finally, the Q1 2025 InsurTech funding report shows where capital is flowing—and what that says about strategic priorities across the sector.

Considering all this, it’s clear that InsurTech—and FinTech more broadly—is back at the table.

Hope you enjoy the read!

P.S. If you're navigating InsurTech regulation, policy, or innovation—and think I can help—don’t hesitate to get in touch.

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Andres

Open Insurance use cases unlocked by FiDA: insurance dashboard and insurance wallet

The European Financial Data Access (FiDA) proposal can unlock several insurance use cases. In my recent blog posts, I highlighted two of them.

First: the insurance dashboard.

This would serve as a central access point, aggregating data from all insurers and intermediaries with whom the consumer has a relationship. Moreover, the dashboard could allow other insurance providers to present their offerings, enabling consumers to compare coverage options and prices across the market.

Such a tool would offer a comprehensive view of an individual’s insurance position and empower them to evaluate alternative products — ultimately supporting more informed decisions. It would be a valuable digital tool for accessing and understanding insurance coverage in a meaningful, user-centric way.

Enhanced trust. More choice. Better, more informed decisions. Stronger financial resilience.

These are precisely the kinds of outcomes the Savings and Investments Union (SIU) aims to achieve.

Second: a lighter version of the insurance dashboard.

This simpler application would still offer significant benefits to consumers by providing a clear overview:

• These are my policies
• These are my insurers
• These are the renewal dates

That’s all — for a start.

Read more about insurance wallet here and insurance dashboard here. 

Affirmative AI Liability Insurance

Armilla Insurance Services (Armilla), a Coverholder at Lloyd's, has announced the launch of its AI Liability Insurance policy. Underwritten by certain underwriters at Lloyd’s, including Chaucer, this policy provides affirmative coverage for AI-related risks.

As stated in the press release, businesses are racing to deploy AI, but their risk management and insurance tools haven't kept pace. There is growing concern around “silent AI cover”—the uncertainty over whether existing policies will respond to AI-specific failures, potentially repeating the early, costly lessons seen with cyber risk. This new product aims to address that gap by offering AI Liability Insurance with clear, affirmative coverage.

Read more here. 

Safeguarding Home Insurance: Reducing exposure and vulnerability to extreme weather

As I often argue, we cannot tackle fundamental societal challenges—such as reducing exposure and vulnerability to extreme weather—without an informed, enabling, and supportive approach to financial innovation, policy, and regulation.

According to this report over the past decade, innovations aimed at addressing physical climate risks have surged. These include advancements in risk monitoring and assessment, proactive maintenance, risk reduction and prevention, as well as changes to insurance and mortgage analytics, and the adoption of risk-based insurance pricing.

This progress has been driven by philanthropic efforts, public and private sector funding, an entrepreneurial mindset, and the broader push for a safer, more resilient society.

Still, I believe there is much more that can be done—particularly through data policies that promote open data, open finance, and open insurance.

And yes, I’m in the camp that believes open finance frameworks—such as the European Financial Data Access (FiDA) proposal—can play a significant role here, despite concerns from some stakeholders about a potential increase in the protection gap.

Read more here. 

AI agents in insurance

Are we about to see a network of AI agents that substitute insurers?

Often referred to as “orchestrator agents,” autonomous AI agents are designed to achieve specific goals with minimal human intervention.

They can extract greater value from data, reduce operational costs, automate processes, and improve decision-making.

Importantly, they also learn from past interactions and can execute tasks independently.

Personally, I don’t believe we’ll see fully decentralized, DAO-like insurers any time soon.

Human interaction will remain essential—if not for regulatory and supervisory reasons, then because many consumers still value the human touch.

This varies by geography, line of business, and the specific point in the insurance value chain.

My view is that AI agents will increasingly collaborate with humans rather than fully replace them.

Read more here. 

AI in finance: Balancing innovation and stability

AI has already transformed financial and insurance markets, but how does it affect how financial regulators balance innovation with compliance? 

A recent OECD.AI analysis maps and examines the different approaches to regulating AI in finance across 49 jurisdictions worldwide. 

I shared this detailed report with you when it was published, but if you haven't had time to read it, this excellent blog post summarizes it.

Read more here. 

13 Real-Life Generative AI Applications in the Insurance Industry

1. Assistance in comparing competitors’ policy conditions

2. Support for claims handlers and fraud investigators

3. Customer assistance (e.g., Q&A, contract selection)

4. Analysis of documents and other unstructured data

5. Support for researching insurance regulations

6. Answers to customers’ legal questions

7. Support for customer claims handling

8. Customer calls and feedback analysis

9. Analysis of legal documents

10. Support for company sales

11. Client-dedicated chatbots

12. Reporting automation

13. Coding assistance

Read more here. 

G20 TechSprint 2025 - Trust and integrity in scalable and open finance

Invitation for global innovators to take up the G20 TechSprint Challenge on trust and integrity in scalable and open finance.

The Bank for International Settlements (BIS) and the South African Reserve Bank (SARB) launched the sixth edition of the G20 TechSprint, focused on developing innovative solutions to promote trust and integrity in finance.

This year's TechSprint addresses three key problem statements, jointly formulated by the BIS Innovation Hub and SARB:

1. Digital identity solutions: Establish trust among financial institutions through innovative, verifiable, and privacy-preserving digital identity technologies.

2. Credit data portability: Improve access to finance for small and medium-sized enterprises through secure, consumer-consented data exchange solutions that enable seamless cross-border sharing of credit information.

3. Solutions to mitigate fraud and cyber risks: Foster the global adoption of fast payment systems – thereby promoting financial inclusion and economic growth – through technologies designed to reduce fraud and cyber threats.

Read more here. 

The Gallagher Re Global InsurTech Report for Q1 2025

The Gallagher Re Global InsurTech Report for Q1 2025 is the first in this year’s series, continuing the analysis of how the (re)insurance industry is adopting AI solutions. 

This edition sharpens the commercial focus by examining AI applications in the four largest insurance business lines (by gross written premium), with a specific emphasis on auto/motor insurance across both personal and commercial segments.

The report also examines and provides insights, on the performance of the InsurTech market during Q1 of this year. 

Key Findings for Q1: 

• Global InsurTech funding surged 90.2% quarter on quarter to $1.31B
• P&C InsurTechs raised $1.13B in funding over Q1'25, the highest level since Q3'22
• Early-stage InsurTech funding reached a nearly 5-year low in Q1'25
• 2% of Q1'25 InsurTech deals went to AI-centered companies ($710.86M)
• 5 (re)insurance investors made 3 or more tech investments in Q1'25

Read more here. 

Insurance and Sustainable Development

The paper presents 11 design principles (7 and 8 are innovation-related) – practical guidelines for framing and guiding efforts to mobilise and scale the use of insurance in sustainable development efforts: 

1. Elevate the role of insurance in development agendas and framework

2. Articulate the societal value of insurance 

3. Education and capacity building are catalysts for transformation

4. Prevention is better than cure 

5. Sustainable development is broader than climate change and reducing emissions

6. Sustainable development is a transformation and innovation agenda 

7. Innovate for local contexts and underserved communities

8. Data and digital technologies fuel scalable innovations

9. Public-private dialogue is crucial to shape effective markets 

10. The multiplicative power of multi-stakeholder partnerships 

11. Public sector finance is required to fuel transformational market innovations

Read more here.