Reinventing Insurance: The New Nexus of AI and Sustainability, at Eurapco Summit, Berlin 2025

September 2, 2025 at EURAPCO European Insurance Leaders Summit, Berlin

“Forget everything you know about insurance.”

Look around the world and you already see fabulous, innovative insurers reimagining their industry. The challenge of insuring against the risks of catastrophic climate crisis, and the opportunity of developing new AI-predictive business models, gives insurance companies the opportunity for radical reinvention.

• Daniel Schreiber launched US-based Lemonade “to remake insurance for social good, rather than a necessary evil”, a digital native business but illustrating the potential for every company to change.
• In Tokyo, CEO Keiji Nishizawa calls Sompo Insurance “a theme park of services for security, health and wellbeing”, seeking to reinvent the business as encouraging positive lifestyle behaviours, not just a need,
• In London, Previsico, was developed by Dapeng Yu to specifically address the challenges of climate change, and in particular the huge, inpredictable risks of extreme weather and natural disasters
• In Shenzhen, Jessica Tan has turned Ping An into a platform for radical growth, starting with the assets of the world’s largest insurance business, and creating leading platforms in healthcare, mobility, and beyond.

Now is the time for insurance leaders to open their minds, to embrace a world that is changing incredibly fast in both its challenges and opportunities, to reimagine how it supports customers, supports a better world, and drives profitable growth.

Two themes emerge – sustainability, in its many social and environmental forms, provides the greatest risks to society, and therefore challenges for insurance – and AI-enabled technologies provide the most significant opportunities to transform business models, to address these risks more effectively, to reframe insurance brands, and drive new profitable growth for insurers.

AI is already a huge catalyst for reinvention – disrupting the traditional insurance business model by reshaping underwriting and risk assessment, dynamic pricing and efficient distribution, automating claims and customer service. More than this, it will transform the customer experience – predictive analytics enabling personalised policies and pricing, analytics that encourage and reward better customer behaviours. In these ways AI also allows insurance to be more human, more relevant, more positively enabling, and more valued too.

Sustainability becomes an opportunity to do better – including new profitable business lines –  rather than just a necessity for ESG compliance. New initiatives and paid services that support better living and working – from healthy living to safer driving, safer industrial processes and lower emissions – contribute positive social and environmental impacts. Enabled by AI and new technologies, such initiatives profoundly change attitudes and actions of customers, while also transforming insurance risks, profitability and brand perceptions.

• AI for modelling extreme events (Nature)
• AI-driven hurricane risk assessment (Nvidia/AXA)
• Reinventing Insurance: from disaster claims to smart protection (Peter Fisk)

Reinventing insurance around the world

Insurance companies around the world are under immense pressure to reinvent themselves in the face of growing systemic risks—especially from climate change—and are simultaneously presented with unprecedented opportunities through AI and digital technologies. In response, leading insurers are shifting from reactive models (paying claims) to proactive, predictive, and preventive models, leveraging AI, big data, IoT, and partnerships with tech innovators.

There are 4 key drivers of reinvention are rising systemic risks, AI, changing customer expectations and regulatory pressure.

Climate-related catastrophes (wildfires, floods, hurricanes) are increasing in frequency and severity, creating “uninsurable zones” and massive payout burdens. AI enables better risk modeling, real-time pricing, fraud detection, and personalization. Customers demand digital-first, hyper-personalized, and transparent insurance experiences.  Insurers are expected to integrate sustainability and social responsibility into their portfolios.

Illustrating the impact of climate catastrophes: The European floods of 2021 (largely in Germany, Belgium, Netherlands) caused over €40 billion in damages, with over 200 lives lost. Flash floods overwhelmed early warning systems and affected areas previously not classified as high risk. Insurers needed to upgrade flood risk models using AI and satellite data, collaborate with governments to improve climate adaptation infrastructure, expand availability of flood coverage, even in inland or non-traditional risk zones.

Embracing these drivers has led to insurance companies embracing strategic shifts

• From payout to prevention:

  • Insurers are becoming risk partners, not just underwriters.

  • Example: Some use IoT sensors in homes and factories to prevent fires or leaks, reducing both risk and payouts.

• From annual to real-time pricing:

  • AI allows continuous pricing updates based on behavior or environmental changes.

  • Example: Usage-based auto insurance that changes rates depending on driving patterns.

• From generic to hyper-personalized products:

  • AI enables tailored products for niche segments (e.g., gig workers, freelancers, digital nomads).

  • Example: SafetyWing offers global insurance for remote workers, based on individual travel patterns.

• From siloed to ecosystem-based models:

  • Insurers partner with tech platforms, health providers, banks, etc., to embed insurance and improve risk management.

  • Example: Ping An (China) offers health, banking, and insurance in one digital ecosystem

Insurers must rethink risk models – move beyond historical data toward forward-looking, AI-driven climate models that account for compound risks (eg floods and pandemics). This demands they integrate climate scenarios and dynamic risk scoring into underwriting.

They must develop parametric insurance which pays out automatically based on trigger events (eg rainfall level, wind speed), not claim assessments. This is useful for agriculture, tourism, logistics, and governments. It speeds up disaster relief and economic recovery.

They must also close the protection gap. Globally, over 50% of disaster losses are uninsured—much higher in developing nations. This requires them to launch inclusive insurance products for low-income and vulnerable populations using mobile tech and community partnerships.

All this means new business models. For example, promoting risk mitigation, insurers can incentivize resilience through discounts for flood-proofing or wildfire-resistant construction, and credits for using sustainable materials or installing early-warning systems

It can be supported by new public-private partnerships with governments, and diversified risk pools. This means using global reinsurance and alternative capital (catastrophe bonds) to spread risk across regions and investors. As an example Swiss Re and Munich Re are leaders in using catastrophe bonds to absorb extreme losses.

 

Ping An: Reinventing insurance through AI and ecosystem innovation

Ping An, the world’s largest insurance company, has undergone a dramatic reinvention in recent years, transforming from a traditional financial services firm into a global leader in tech-driven insurance and integrated services. Central to this reinvention is its pioneering use of artificial intelligence, big data, and ecosystem thinking to tackle emerging risks and reshape the customer experience.

Faced with climate change-driven risks such as floods and typhoons, Ping An has invested heavily in AI-powered weather risk modeling. Its Smart Weather platform combines satellite data, sensor networks, and AI analytics to monitor extreme weather events in real time and assess their potential impact on insured properties and agricultural assets. This allows Ping An to proactively warn customers, deploy resources, and adjust coverage dynamically—reducing both risk exposure and claims costs.

Beyond reactive protection, Ping An has built an ecosystem of services designed to help customers prevent risks and improve their lives. For example, its “Good Doctor” health platform—used by over 300 million users—integrates AI triage, telemedicine, and online drug delivery, reducing pressure on hospitals and helping customers manage chronic health risks before they escalate. Similarly, its Smart City initiatives use AI and IoT technologies to work with local governments to enhance disaster resilience, improve traffic safety, and reduce pollution.

These innovations are underpinned by Ping An’s vast technology infrastructure. The company’s in-house tech arm, OneConnect, provides cloud-based digital solutions to insurers and banks worldwide, turning Ping An’s transformation into a scalable, exportable service. AI is embedded across its operations, from underwriting and claims assessment to fraud detection and customer service. The company reports over 1.4 billion AI service interactions annually.

Ping An’s reinvention is paying off. It has achieved superior underwriting profitability while maintaining rapid growth in digital channels. More importantly, it is redefining what an insurance company can be—not just a payer of claims, but a partner in life. By turning risk prevention into a service and embedding itself in daily life through health, finance, and city services, Ping An has built a moat that extends well beyond traditional insurance.

AXA: From Payer to Partner in Risk Prevention and Climate Resilience

French multinational AXA is a prime example of an insurer embracing reinvention in the face of global environmental and social challenges. With operations in over 50 countries, AXA is repositioning itself as a partner in prevention, using digital technology and new business models to reduce risk and support more resilient communities.

In response to climate change, AXA has taken a proactive approach to helping customers prepare for and adapt to extreme weather events. Through its partnership with climate tech firms, it offers predictive tools that use AI to model flood, wildfire, and storm risk. These tools help homeowners, businesses, and cities understand their vulnerabilities and take pre-emptive measures, from elevating infrastructure to adjusting land use.

AXA Climate, a specialized division, works with corporations, governments, and NGOs to build resilience to climate shocks. It offers parametric insurance products—where payouts are triggered automatically by pre-agreed data thresholds (e.g., rainfall or wind speed)—delivering rapid financial relief after disasters. This model is especially valuable in developing markets where traditional claims processing is slow or infeasible.

Beyond climate risk, AXA is also tackling lifestyle-related risks. It has launched services like “MyAXA Health Coach” to help customers prevent chronic diseases through personalized wellness plans, behavioral nudges, and access to dieticians and fitness experts. In mobility, AXA has introduced dynamic insurance pricing for electric vehicles and shared mobility services, using telematics data to reward safe driving habits and reduce accidents.

Digital transformation underpins these efforts. AXA uses AI for customer triage, risk scoring, and automated claims processing. Its data analytics platforms allow it to offer hyper-personalized policies and preventive advice, while its venture arm, AXA Next, invests in startups that align with its “from payer to partner” vision.

Through these innovations, AXA is positioning itself as more than an insurer—it’s a catalyst for systemic risk reduction and behavioral change. By aligning insurance with sustainability and prevention, AXA is charting a path for the industry to remain relevant and resilient in a world of rising risk.

Sompo: Reinventing Insurance for a Resilient and Safer Society

Sompo Holdings, one of Japan’s leading insurers, is undergoing a bold transformation from a traditional insurance company into a purpose-driven service provider focused on risk prevention, resilience, and well-being. With climate change, aging populations, and global uncertainty reshaping the nature of risk, Sompo is innovating its business model to not just insure against loss but actively reduce and prevent it.

A central pillar of Sompo’s reinvention is its focus on technology—particularly artificial intelligence, data analytics, and digital platforms. One of the standout initiatives is Sompo’s use of AI to address extreme weather and natural disaster risk. Japan is particularly vulnerable to typhoons, earthquakes, and flooding, and Sompo has responded by investing in advanced catastrophe modeling and predictive analytics. Its AI systems analyze weather data, satellite imagery, and environmental trends to anticipate the severity and impact of incoming storms. This enables Sompo to proactively notify customers, advise on evacuation or property protection steps, and deploy rapid response teams more efficiently—mitigating losses before they occur.

Sompo also operates an integrated crisis management platform called “SOMPO Risk Manager,” which helps businesses and municipalities plan for and respond to disasters. The platform combines AI forecasting tools, risk visualization dashboards, and real-time alerts to support strategic decision-making during emergencies. This is particularly valuable for supply chain risk management, a growing concern in the wake of global disruptions.

At the same time, Sompo is reshaping its relationship with customers through personalized services aimed at reducing behavioral risks. One example is the company’s investment in digital health and elder care. Recognizing the challenges of Japan’s aging society, Sompo has developed “SOMPO Care,” a comprehensive service that integrates long-term care, remote monitoring, and AI-based health assessment tools. By helping seniors live more safely and independently, Sompo is not only creating social impact but also reducing long-term insurance claims and healthcare costs.

In auto insurance, Sompo is using telematics and behavioral data to reinvent its motor products. Through its “DRIVE AGENT” app, the company tracks driving behavior in real time and provides feedback, coaching, and emergency support. Customers who drive safely receive discounts, while the app can also summon help automatically after a crash. This move from passive coverage to active risk management has improved customer engagement and reduced accident-related claims.

Sompo’s innovation is supported by a global digital strategy. Through its subsidiary Palantir Japan and its Silicon Valley-based Sompo Digital Lab, the company is building data platforms that connect healthcare, mobility, disaster prevention, and risk modeling. It has also launched Sompo Light Vortex, a cloud-based architecture to accelerate digital services and AI deployment across its businesses.

This transformation is part of Sompo’s broader strategic vision, called “Sompo Group Vision 2030,” which aims to create “a theme park for security, health, and well-being.” By aligning business growth with societal resilience and customer empowerment, Sompo is redefining the role of insurance in the 21st century—from reactive protection to proactive prevention and care.

Lemonade: Reinventing Insurance with AI, Behavioral Science, and Purpose

Lemonade, a New York-based insurtech founded in 2015, is redefining what an insurance company can be in the digital age. With a mission to “transform insurance from a necessary evil into a social good,” Lemonade has built a business model radically different from traditional insurers—powered by artificial intelligence, behavioral economics, and a transparent, values-driven approach.

At the core of Lemonade’s reinvention is its use of AI and automation. The company’s digital interface is built around two chatbots—“Maya,” which handles policy sign-ups, and “Jim,” which manages claims. These bots use natural language processing and machine learning to deliver lightning-fast, intuitive service. Customers can get insured in under 90 seconds and receive claim payouts in as little as three minutes, without speaking to a human. Behind the scenes, Lemonade’s AI models assess risk, detect fraud, and price policies dynamically based on real-time data and user behavior.

This AI-first model enables Lemonade to operate with much lower overhead than legacy insurers. But what truly sets it apart is its unique business structure: Lemonade charges a flat fee (typically 25%) from customer premiums to cover operations and reinsurance, and the remainder is pooled to pay claims. At the end of the year, unclaimed money is donated to nonprofits chosen by customers as part of the company’s “Giveback” program.

This structure addresses a long-standing tension in traditional insurance—the conflict of interest where insurers profit by denying claims. Lemonade’s model aligns its incentives with customers by taking profit off the table in the claims process. As a result, customers are more trusting and less likely to game the system, which is reinforced by Lemonade’s use of behavioral nudges (like pledging honesty on video before submitting a claim).

In addition to renters and homeowners insurance in the U.S., Lemonade has expanded into pet, term life, and car insurance. Its car insurance product uses telematics and smartphone sensors to assess driving behavior—rewarding safe driving with lower premiums and offering eco-conscious features like carbon offsetting. This not only encourages safer roads but aligns with a younger, sustainability-minded customer base.

Lemonade is also expanding globally, offering insurance in Germany, the Netherlands, and France, with ambitions to enter more markets. Its cloud-native infrastructure and AI-driven operations allow it to scale quickly, customize offerings locally, and maintain a consistent brand experience.

Despite being a relatively new player, Lemonade has built strong customer loyalty and brand differentiation, particularly among millennials and Gen Z. Its Net Promoter Scores consistently outperform industry averages, and its transparent, digital-first approach has positioned it as a disrupter in a risk-averse, slow-to-change industry.

Lemonade’s reinvention of insurance goes beyond technology. It’s about rebuilding trust, removing friction, and making insurance feel less like a transaction and more like a public good. In a world of increasing risk—from climate change to cyber threats—Lemonade shows how aligning incentives, automating the experience, and infusing purpose into every policy can help reinvent the business of insurance for the better.

 

Oscar Health: Reinventing Health Insurance with AI, Behavioral Science, and Purpose

Oscar Health is reshaping the American health insurance landscape by combining technology, data science, and a relentless focus on consumer experience. Founded in 2012 in New York City by Mario Schlosser, Josh Kushner, and Kevin Nazemi, Oscar emerged with a bold ambition: to make health insurance simple, transparent, and human.

Unlike traditional insurers burdened by legacy systems and opaque practices, Oscar was designed from the ground up as a digital-first health insurer. From the beginning, it emphasized intuitive design, smart use of data, and consumer empowerment. Its mobile app and website provide members with seamless access to their health plan, including a searchable provider directory, real-time benefits tracking, and 24/7 virtual care.

One of Oscar’s core innovations is its use of artificial intelligence and machine learning to drive personalization and efficiency. AI is integrated into multiple layers of the business—from customer support chatbots and virtual care triage to complex claims processing and risk modeling. Oscar’s Intelligent Virtual Assistant (IVA) parses user queries and guides members to appropriate resources, while its Care Router tool uses data to match patients with providers who have strong outcomes for specific conditions. These technologies not only improve user satisfaction but also reduce unnecessary costs.

Oscar also embraces behavioral economics to change how members engage with their health. Members are incentivized to make healthier choices through step-tracking rewards, personalized health nudges, and easy-to-navigate care options. The company’s design ethos is user-centric and rooted in transparency—members are always informed of their costs upfront, with clear explanations of coverage and claims.

Oscar’s unique value proposition has made it particularly attractive to younger, tech-savvy consumers who are often underserved by conventional insurers. The company has expanded rapidly, now serving more than 1.8 million members across 18 states. It offers individual, family, and small group plans, as well as co-branded health plans in partnership with major health systems such as Cleveland Clinic.

In 2020, Oscar launched +Oscar, a tech platform offering its infrastructure to other payers and providers, turning its technology edge into a scalable service. By opening its backend to others, Oscar is evolving from a pure insurance provider into a broader healthcare platform company—positioning itself at the intersection of health, data, and AI.

Oscar’s financial journey has been challenging—like many insurtech startups, it faced steep losses in its early years. But the tide began to turn by 2024, when Oscar reported its first profitable year with over $25 million in net income and a 57% growth in revenue to $9.2 billion. This milestone signaled not just operational maturity but validation of its digital model.

Looking ahead, Oscar aims to expand its footprint and deepen its AI capabilities, with a focus on population health, chronic care management, and further automation. It continues to advocate for a reimagined insurance experience—one that’s data-driven, prevention-focused, and fundamentally more human.

In a healthcare system often defined by confusion and inefficiency, Oscar Health offers a compelling glimpse into what insurance can be when reimagined through the lens of technology, empathy, and consumer empowerment.

Swiss Re: From Reinsurer to Climate Intelligence Company

Swiss Re, one of the world’s largest reinsurance companies, is transforming itself from a traditional provider of risk transfer into a forward-looking climate intelligence company. Founded in 1863 and headquartered in Zurich, Swiss Re has long been a global leader in managing complex risks. Today, facing the escalating impact of climate change, it is positioning itself at the forefront of climate adaptation, risk analytics, and sustainability-focused innovation.

Swiss Re’s transformation is driven by a recognition that climate change is no longer a distant threat—it’s a present, intensifying risk that touches every aspect of business and society. As natural catastrophes become more frequent and severe, insurers and reinsurers must evolve from simply absorbing climate-related losses to actively helping clients understand, manage, and reduce those risks.

At the heart of Swiss Re’s reinvention is climate intelligence—the application of advanced data, science, and technology to map, model, and mitigate climate risks. The company’s proprietary CatNet® platform provides detailed risk assessments using climate models, satellite data, and geospatial analytics. This tool helps clients—from governments to global corporations—understand their exposure to floods, wildfires, hurricanes, and heatwaves with a level of granularity that goes far beyond traditional underwriting.

Swiss Re has also launched Climate Solutions, a business unit dedicated to supporting clients’ transition to a low-carbon economy. This includes designing parametric insurance products that pay out automatically based on predefined climate triggers—such as rainfall levels or wind speeds—offering faster recovery for communities and businesses impacted by extreme weather.

In parallel, Swiss Re is reengineering how it operates as a company. It has committed to net-zero emissions by 2050, both in its underwriting and investment portfolios. It was among the first reinsurers to phase out coverage for new oil and gas projects that conflict with the Paris Agreement goals. Its investment arm is redirecting capital toward renewable energy, clean infrastructure, and green bonds, aligning its balance sheet with global decarbonization efforts.

Technology plays a crucial role in Swiss Re’s evolution. The company is integrating machine learning and AI into its climate models to forecast long-term risk scenarios with greater precision. Through partnerships with academic institutions and climate tech startups, it is helping to develop next-generation risk models that account for the non-linear impacts of climate change.

One example is Swiss Re’s work on urban climate resilience. Collaborating with cities around the world, Swiss Re combines satellite imaging, AI, and economic modeling to assess risks such as urban heat islands and flood zones—then helps municipal governments build tailored resilience strategies and secure insurance coverage for critical infrastructure.

Financially, Swiss Re remains robust, but its strategy is no longer centered on premiums and payouts alone. It is becoming a knowledge partner, enabling clients to anticipate and adapt to climate risk, not just insure against it. CEO Christian Mumenthaler has described the shift as moving from “protecting against the past” to “enabling decisions for the future.”

Swiss Re’s transformation signals a broader industry pivot. As the climate crisis deepens, the future of insurance will depend less on compensating loss and more on empowering prevention. Swiss Re is leading that transition—from reinsurer to climate intelligence company.

Zurich Insurance: Reinventing Insurance Through Technology and Sustainability

Zurich Insurance Group, one of the world’s largest and oldest insurance companies, is undergoing a bold transformation to stay ahead in an industry facing profound disruption from climate change, technology, and changing customer expectations. Founded in 1872 and headquartered in Switzerland, Zurich is embracing a future-forward strategy that combines digital innovation, artificial intelligence, and sustainability to reinvent both its business model and value proposition to customers.

At the heart of Zurich’s reinvention is its ambition to become a more data-driven, customer-centric organization. Over the past five years, Zurich has significantly increased its investment in digital capabilities, launching AI-powered tools for underwriting, claims processing, and risk prevention. For example, the company’s use of machine learning in commercial insurance helps assess and price complex risks more accurately and in real time. In retail insurance, Zurich uses AI to automate simple claims, reducing processing time from days to minutes.

Zurich has also partnered with tech startups and scaled internal innovation hubs to accelerate digital transformation. Its “Zurich Innovation Championship” invites startups worldwide to co-develop solutions in areas like cyber risk, sustainability, and digital health. Winning innovations have included AI-based wildfire prediction models and smart sensor platforms to prevent property damage.

One of Zurich’s most impactful transformations is its commitment to tackling climate-related risk. Recognizing the growing frequency and severity of extreme weather events, Zurich is not just paying claims—it’s helping customers proactively reduce risk. The company offers climate advisory services and resilience assessments for corporate clients, and it has partnered with tech firms to develop early-warning systems for floods and wildfires. These tools combine satellite data, meteorological inputs, and AI to alert communities and businesses before disaster strikes.

In retail insurance, Zurich is increasingly focused on prevention. For example, the company offers home insurance customers smart water leak detectors that reduce the likelihood of damage—and claims—by alerting homeowners in real time. In motor insurance, Zurich provides telematics-based products that reward safe driving and help drivers improve their behavior behind the wheel.

Zurich’s reinvention also includes a sharp pivot toward sustainability. The insurer has committed to achieving net-zero emissions across its operations and investments by 2050. It was one of the first major insurers to stop underwriting new oil and gas projects that are not aligned with the Paris Agreement. At the same time, Zurich is investing heavily in green bonds and renewable energy infrastructure, aligning its capital with its values.

Financially, Zurich’s transformation is delivering results. The group reported a strong combined ratio and continued growth in 2024, with CEO Mario Greco attributing success to the company’s ability to “transform itself faster than the risks around us are changing.”

Zurich is proving that even a 150-year-old insurer can lead in an age of uncertainty—by embracing technology, focusing on sustainability, and shifting from a payer of claims to a true partner in risk prevention and resilience. Its transformation underscores how insurers can evolve from reactive institutions to proactive enablers of a safer, more sustainable future.

Some more examples of insurance companies reinventing themselves include

Allianz, investing in AI and Climate Resilience

Allianz has invested heavily in climate risk modelling, working with tech partners like ClimateView and One Concern to predict regional vulnerabilities. It uses AI-driven pricing and underwriting to refine property insurance policies based on real-time data from satellites, sensors, and weather models. Allianz has also launched “climate adaptation insurance” products for municipalities and businesses. This has resulted in improved underwriting accuracy, reduced claim costs, and increased trust among ESG-conscious clients.

Aviva, Sustainability and Data-Driven Risk Prevention

Aviva is embedding climate change into its core strategy, divesting from fossil fuels and steering capital toward sustainable investments. It is using AI to model risk exposure to climate transition policies, helping corporate clients assess liability and reputation risks. The firm is digitizing claims through AI chatbots and automated assessment, speeding up resolution times. This has resulted in competitive ESG ratings, early mover advantage in net-zero insurance, and improved operational efficiency.

AXA, Leading in Parametric and Inclusive Insurance

AXA Climate, a subsidiary, offers parametric insurance using real-time weather and satellite data—especially useful in agriculture, where farmers are paid automatically if rainfall thresholds are missed. AXA also invests in AI-based early warning systems and ecosystem resilience tools, especially in Asia and Africa. They’ve launched microinsurance and inclusive insurance products in emerging markets using mobile platforms. The result? New revenue streams in underserved markets, a strong presence in climate adaptation financing, and lower administrative costs via automation.

BIMA, Mobile Microinsurance and AI

Swedish insurance company BIMA provides affordable health and life insurance via mobile phones in underserved markets, largely in Africa. It uses AI to assess risk profiles based on behavior (e.g., mobile usage, health data).  Over 35 million users in emerging markets, reducing financial vulnerability in low-income communities.

Singlife, Embedded Insurance and Ecosystem Play

The Singapore insurer offers “embedded insurance” through banking and lifestyle platforms (e.g., instant coverage while booking flights). It uses AI to personalize plans based on user lifestyle and financial behavior. This has resulted in broader market reach and improved customer engagement in Southeast Asia.

The result is a reinvention of business, reducing risks and costs, building new revenues and profitability

• Operational Efficiency: AI reduces fraud, claims processing time, and administrative costs.
• New Markets: Digital tools and mobile microinsurance reach previously unserved populations.
• Risk Mitigation: Real-time data helps reduce exposure and pricing volatility.
• Customer Loyalty: Proactive service, digital UX, and social impact build trust.
• Investor Confidence: Climate-aligned portfolios attract ESG capital and comply with regulations.

The most innovative insurance companies preparing for extreme crises—from war and geopolitical disruption to climate-driven catastrophes—are those actively building capabilities in real-time risk modeling, parametric insurance, resilience services, and digital ecosystems. These companies are not just covering losses; they’re helping prevent them, mitigate impact, and enable faster recovery.

Here are the standouts:

Munich Re (Germany)

Why it leads:

• Global leader in reinsurance for natural disasters, pandemics, and cyberwarfare.

• Heavy investment in climate risk modeling, satellite data, and catastrophe bonds.

• Innovator in parametric insurance for floods, droughts, and typhoons.

Innovations:

• Risk transfer tools for governments and megaprojects.

• Partnership with Cloud to Street and The Climate Corporation.

• Reinsurance for solar/wind assets with automated weather triggers.

AXA Climate (France)

Why it leads:

• Sub-brand of AXA focused entirely on climate adaptation and disaster resilience.

• Offers climate parametric policies to companies, farms, and public entities.

• Combines satellite data, agritech, and carbon project consulting.

Innovations:

• Covers supply chain disruption from climate events.

• Tools for biodiversity, soil health, and sustainable transition.

• Advises on ESG-linked insurance and climate disclosure compliance.

FloodFlash (UK)

Why it leads:

• Specializes in parametric flood insurance using IoT sensors.

• Payouts triggered immediately when water levels reach a pre-agreed height.

• Covers SMEs and underserved geographies usually excluded by traditional insurers.

Innovations:

• <24-hour payouts.

• Sensor-as-a-service model for urban resilience.

• Solves flood underinsurance crisis rapidly expanding with climate change.

Swiss Re (Switzerland)

Why it leads:

• Global leader in disaster and systemic risk finance.

• Works with governments, NGOs, and financial institutions to design resilience-based products.

Innovations:

• Public-private partnerships (e.g., African Risk Capacity).

• Climate analytics via its Climate Solutions platform.

• Development of sovereign catastrophe covers.

QBE (Australia)

Why it leads:

• Integrated catastrophic event response units.

• Active in regions prone to cyclones, bushfires, and flooding.

• Focused on building resilience into property and agriculture.

Innovations:

• Risk reduction programs in Asia-Pacific.

• Tools for sustainable farming insurance.

• Embedded weather products in agribusiness.

Lloyd’s of London (Marketplace)

Why it leads:

• Covers hard-to-insure systemic risks like cyberwarfare, terrorism, political violence.

• Innovation Lab fosters InsurTech and climate solutions.

Innovations:

• Black Swan Reinsurance Facility for tail-risk events.

• Syndicates offer war-on-earth and climate-linked asset protection.

• Hosting new models for carbon capture insurance, space assets, and even pandemic risk.

Sompo Holdings (Japan)

Why it leads:

• Building real-time disaster prevention infrastructure using Palantir’s analytics.

• Focus on societal protection in high-risk regions like Japan and Southeast Asia.

Innovations:

• Real Data Platform for earthquake, typhoon, and aging risk.

• Integration with municipal disaster planning.

• Smart care homes designed for climate-resilient infrastructure.

Q&A

“How can we, as leaders in the insurance industry, move beyond simply being a financial backstop for these events and become active partners in building resilience?”

The insurance industry stands at an inflection point. For centuries, insurers have provided society with stability by absorbing financial shocks—whether from fire, flood, accident, or illness. Yet today, the scale, speed, and complexity of risks are outpacing the traditional model. Extreme climate events, cyberattacks, pandemics, supply chain disruptions, and geopolitical instability are creating losses that are not just more frequent, but more systemic.

At the same time, artificial intelligence (AI) and digital technologies are transforming how risk can be understood, predicted, and managed. Insurers face both a threat and an opportunity: remain stuck as reactive claims payers, or reinvent themselves as proactive risk partners who enable resilience for individuals, businesses, and societies.

From Risk Transfer to Risk Mitigation

Historically, insurance has been about risk transfer: pooling resources so the unlucky few who suffer losses can be compensated. But in a world where systemic risks can destabilise entire markets or communities, simply writing checks is no longer enough.

The new model must be about risk mitigation: reducing the likelihood, impact, and recovery time of risks before and after they occur. This requires insurers to expand their role from passive financiers to active enablers of prevention, adaptation, and resilience.

The Role of AI in Reinvention

AI is central to this shift. Rather than looking backward at historical loss data, insurers can use AI to:

1. Predict emerging risks – Real-time climate modelling, cyber threat detection, and health analytics.
2. Personalise prevention – Tailored risk advice for policyholders, from connected home devices to wearable health monitoring.
3. Automate claims and response – Faster, more transparent payouts, freeing resources for proactive services.
4. Enable dynamic pricing – Continuous risk assessment that rewards resilience-building behaviour.

AI doesn’t just make insurers more efficient—it enables entirely new services and value propositions.

Critical Investments for the Industry

1. Data ecosystems
   • Invest in platforms that integrate diverse datasets—climate, health, mobility, supply chains—to model risks more holistically.
   • Partner with governments, tech firms, and research institutions to share insights, not just within actuarial silos.
2. Resilience infrastructure
   • Co-invest in flood defenses, wildfire buffers, or cyber resilience systems, aligning insurance with public goods.
   • Develop “resilience bonds” or blended finance models that tie coverage to mitigation measures.
3. AI-driven risk services
   • Build digital tools that give customers continuous risk insights (e.g., cyber threat alerts, extreme weather warnings).
   • Position insurers as everyday advisors rather than once-a-year premium collectors.

Partnerships That Matter

• With technology companies – For AI, IoT, blockchain, and cloud infrastructure to enable predictive risk modelling and smart contracts.
• With governments and municipalities – To co-fund infrastructure, share data, and address uninsurable risks (such as climate-induced catastrophes).
• With customers – Moving from transactional relationships to collaborative partnerships where data is shared in exchange for risk reduction and lower premiums.
• With peers – Creating pooled insurance mechanisms for systemic risks that exceed the capacity of any one player.

Reinventing Business Models

To shift from claims payer to risk mitigator, insurers must embrace new models:

• Prevention-as-a-service – Offering subscription-style risk monitoring, education, and advisory alongside traditional policies.
• Embedded insurance – Integrating protection seamlessly into products and platforms (e.g., travel apps, smart homes, e-commerce).
• Outcome-based models – Linking premiums and payouts to measurable resilience outcomes (e.g., emissions reduced, cyberattacks prevented).
• Community-based models – Leveraging mutual and cooperative structures to build shared responsibility and trust.

A New Mindset for Insurance Leaders

Reinvention is not only about products and technology; it is about culture and purpose. Leaders must shift their mindset from:

• Claims processing → Risk partnership
• Historical underwriting → Predictive resilience
• Short-term loss ratios → Long-term societal stability
• Insularity → Ecosystem collaboration

In doing so, insurers can redefine their role as guardians not just of financial assets, but of societal resilience.

The Strategic Question

Insurance has always been about making the future less uncertain. But in an age of climate extremes, pandemics, and digital disruption, the future is not only uncertain—it is volatile, interconnected, and fast-moving. The industry’s legitimacy will depend on whether it can help societies navigate these shocks proactively.

The challenge for leaders is clear: how to harness AI, forge new partnerships, and redesign business models to ensure insurance is not the last line of defence but the first line of resilience.

On a Collaborative Approach to Sustainability

A new nexus is emerging in the insurance industry.

For decades, our companies have operated in parallel—competing for customers, innovating in products, and working within regulatory frameworks. Yet today, the scale of the challenges we face—climate change, social inequality, demographic shifts, systemic cyber threats—demands a different approach. No single firm, no matter how large or innovative, can address these issues alone.

The insurance sector has always been about resilience. But resilience in the 21st century cannot be reduced to risk transfer; it must include prevention, adaptation, and social sustainability. That means moving from individual corporate initiatives to collaborative, industry-wide action. Together, our seven companies can form a nexus of influence—aligning capital, data, and expertise to create impact that no single player could achieve.

Why Collaboration Matters

1. Scale of Risk
   • Climate-related losses are growing at a rate that outpaces economic growth.
   • Social inequality undermines both markets and the insurability of populations.
   • These risks are systemic and interconnected—too large for any one balance sheet.
2. Shared Responsibility
   • As insurers, we are not just underwriters of risk, we are stewards of capital, influencers of corporate behaviour, and enablers of resilience in communities.
   • When we move in concert, we can set standards, shift market expectations, and accelerate sustainable transformation.
3. Trust and Legitimacy
   • Customers, regulators, and investors are demanding more than financial results.
   • Collaborative sustainability initiatives can reinforce trust and strengthen our social license to operate.

Incentives and Disincentives

• Regulatory incentives
  • Increasingly, regulators are requiring climate risk disclosure (e.g., TCFD, EU taxonomy, ISSB standards).
  • Some markets are rewarding sustainable investments with preferential capital treatment.
  • Public–private partnerships are emerging to de-risk green infrastructure, opening new avenues for insurers.
• Market incentives
  • Investors are shifting trillions into ESG-aligned portfolios.
  • Customers, particularly younger generations, prefer brands aligned with sustainability and fairness.
  • Collaborations on green bonds, resilience bonds, or carbon risk pools create competitive differentiation.
• Disincentives and barriers
  • Fragmented regulations across regions slow alignment.
  • Short-term shareholder pressure can conflict with long-term sustainability goals.
  • The “first-mover disadvantage”—the fear of higher costs or stricter commitments—can hold companies back unless collaboration ensures a level playing field.

Measuring Long-Term Value

If we measure only quarterly profits, sustainability will always feel like a cost. To justify and drive collaboration, we need to broaden the definition of value:

1. Financial resilience – Reduced long-term exposure to catastrophic losses, more predictable portfolios, and new revenue streams from sustainable products.
2. Regulatory goodwill – Better positioning with regulators who increasingly reward proactive sustainability action.
3. Reputational capital – Brand strength, trust, and talent attraction—intangibles that now drive a majority of enterprise value.
4. Societal impact – Reduced vulnerability of communities, improved access to protection for underserved populations, and contribution to the UN SDGs.
5. System stability – Stronger, more sustainable economies ultimately create healthier insurance markets.

This means designing impact measurement frameworks that go beyond financial ratios to include carbon reduction, resilience outcomes, and social inclusion metrics.

The Call to Action

As leaders of seven companies, Eurapco has a rare opportunity. If we collaborate—sharing data on climate risks, co-investing in resilience infrastructure, pooling resources to make underserved markets insurable—we can create a multiplier effect far beyond what any one of us could do alone.

We can shape a future where insurance is not just a safety net but a springboard for sustainable growth.

The new nexus in our industry is not competition versus collaboration—it is collaboration as a source of competitive strength. By aligning our strategies, leveraging regulatory and market incentives, and measuring value in broader terms, we can transform insurance from a backstop into a force for positive, systemic change.

That is the challenge before us. And it is also the opportunity to redefine our industry for the next generation.

Example Collaborations

1. Insurance Development Forum (IDF)
   • A public–private partnership between the UN, World Bank, and leading insurers (including Allianz, AXA, Swiss Re, Lloyd’s).
   • Works to extend insurance and risk management tools to vulnerable countries, particularly against climate and disaster risks.
2. UN Principles for Sustainable Insurance (PSI)
   • A global framework under the UN Environment Programme Finance Initiative (UNEP FI).
   • Over 220 insurers, reinsurers, and brokers have signed on, committing to integrate ESG issues into their business.
3. Net-Zero Insurance Alliance (NZIA)
   • Launched by eight of the world’s largest insurers and reinsurers, backed by the UN.
   • Members commit to transitioning underwriting portfolios to net-zero greenhouse gas emissions by 2050.
4. ClimateWise (Cambridge Institute for Sustainability Leadership)
   • A global network of insurers and reinsurers developing research, policy, and practical tools for climate risk management.

Regional & Market-Focused Initiatives

1. African Risk Capacity (ARC)
   • A specialised agency of the African Union, backed by insurers and reinsurers.
   • Provides parametric insurance to African nations for droughts, floods, and pandemics, enabling rapid payouts and resilience-building.
2. Oasis Loss Modelling Framework
   • An open-source catastrophe modelling initiative supported by insurers, reinsurers, and academics.
   • Collaborative approach to risk data and modelling, lowering costs and improving access for smaller firms and emerging markets.
3. Flood Re (UK)
   • A partnership between the UK Government and insurers to make flood insurance affordable for high-risk households.
   • A practical example of blending public–private resources to address climate-driven risks.

Company-Collaborative Projects

1. Swiss Re – Climate Resilience Partnerships
   • Works with governments and NGOs on climate adaptation projects (e.g., mangrove restoration in coastal areas to reduce storm surge damage).
2. Munich Re – Green Tech Solutions
   • Co-develops new insurance products with renewable energy firms and infrastructure developers to accelerate clean energy adoption.
3. AXA Climate
   • Offers risk analytics and training services to corporates, farmers, and institutions, helping them adapt to climate and biodiversity challenges.
4. Lemonade & Giveback Model
   • While a digital-first insurer, Lemonade’s cooperative-style Giveback funds NGOs chosen by customers—aligning business with social impact.

Collaborative Measurement & Standards

1. Task Force on Climate-related Financial Disclosures (TCFD)

• Not insurance-specific, but widely adopted by insurers.
• Provides a standardised framework for climate risk disclosure, encouraging comparability and accountability.

1. Sustainability Accounting Standards Board (SASB) & ISSB Standards

• Insurers collaborate in adopting these standards, enabling measurement of ESG and sustainability performance in comparable ways.

Summary

In an era of escalating polycrisis (climate, cyber, conflict, contagion), insurance companies that go beyond indemnity to become resilience platforms will unlock new value streams, win customer trust, and define the future of the sector.

Look beyond the insurance industry, and you already see the patterns of transformational change, and what it could mean for disruptive start-ups and reinventing incumbents. From agriculture to healthcare, energy to entertainment, finance and retail, sustainability has become a huge challenge – and AI, an incredible opportunity – driving the innovation of products and services, and fundamental business models too. These adjacent worlds offer us new inspiration and practical pathways to reinvent insurance for a smarter, cleaner, happier, better future.