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Insurers shift toward risk prevention as data analytics expands
Industry leaders at Lloyd’s and The Hartford say technology is enabling earlier risk identification and real time, localized insights to help reduce losses before events occur.
Insurers are increasingly moving beyond traditional risk transfer as new technology helps carriers identify hazards earlier and support policyholders in preventing losses, senior leaders at Lloyd’s and The Hartford said. The shift is being driven by growing catastrophe exposure, widening protection gaps, and advances in data analytics, artificial intelligence, and environmental monitoring, according to Insurance Business. Leaders also cautioned that insurers are becoming more selective about which technologies they adopt, arguing commercial value depends on whether solutions improve outcomes and fit existing underwriting and operating workflows.
The Hartford’s Matt Scott, head of property and casualty innovation and risk services, highlighted risk mitigation as a clear opportunity, saying insurers now have data sources and analytics that can surface risks sooner and provide insights that help reduce losses before they occur. He added that businesses increasingly seek insurance partners focused on strengthening resilience, making prevention a more meaningful part of the carrier and policyholder relationship.
The Hartford and Lloyd’s also pointed to complex, interconnected threats including wildfire, flood, cyberattacks, and infrastructure deterioration. Lloyd’s Americas CEO Dawn Miller said more granular information should be viewed as complementary to, not a rejection of, established catastrophe modeling, and she linked demand for localized, actionable insights to the frequency and severity of natural catastrophes in the US.