Transforming Financial And Insurance Ecosystems Through Intelligent Automation, Secure Digital Infrastructure, And Advanced Risk Management Strategies

Abstract

In the following article, the authors seek to understand if financial and insurance ecosystems can be further improved by using digital infrastructures and tools like digital platforms, trust services, identity blocks, and intelligent automation capabilities, combined with the use of insurance-oriented capital markets and corridor products that manage the direct engagement of the reinsurance industry with the primary risk markets. This research paper aims to cast light on the transformation mechanisms and to identify better power levers that contribute to faster adaptation to the developing situation of financial and insurance ecosystems that have become, in recent years, increasingly surrounding users who have adopted digital habits. It will also address how insurance risk management strategies can evolve to optimize the impact for interested stakeholders, the role of data and regtech in insurance, the preference for autonomous and scalable systems and necessary capabilities, the optimization of automation, and the monetary potential that could be achieved at the level of individual participants. The considered ecosystem perspective allows for the highlighting of the necessary components and the different roles of the digital platforms, trust services, identity blocks, and intelligent automation capabilities as contributing factors to greater business effectiveness, risk evaluation, and prevention measures, quality of the offered insurance concert, as well as potential financial risks and possible impacts on the reinsurance industry. The paper addresses various aspects of trust and quality of interaction within the financial and insurance ecosystems, considering digital components along four major axes: role and components of trust, characteristics of new generation digital platforms, business ecosystems, and digital capabilities in the structure and operation of reinsurance markets, trust anchors, trust services, and identity attributes. It also provides the insurance risk management strategy and the regtech portfolio.