sigma insights 06/2026: Scaling in a digital economy - trust is key

Swiss Re’s Insurance Digitalisation Index indicates that digital maturity is advancing across countries, with emerging markets progressively narrowing the gap to advanced markets through rapid improvements in access and use. However, higher digitalisation does not automatically translate to fully digital, end-to-end insurance purchases. Trust, advice requirements, product complexity, and market-specific distribution structures continue to anchor intermediated models. A key implication for insurers is that digitalisation is reshaping customer expectations and risk exposures faster than it is reshaping distribution mix. AI may shift this balance, but it remains uncertain whether there will be associated changes in the dynamics of customer acquisition and retention.

Swiss Re’s updated Insurance Digitalisation Index measures progress using 8 OECD-based indicators, relevant to insurance and correlated with insurance penetration.^[1] More than 80% of countries improved on access and use, since 2020, consistent with sustained investment in infrastructure that broadens availability of digital services.

The data highlights a two-speed pattern. Advanced markets still lead and the link between wealth and digitalisation remains visible. Yet advanced markets’ improvements in digitalisation are incremental because many are already near best practice. Emerging markets, by contrast, are catching up with growing connectivity, faster mobile broadband, and more online purchasing.

Digital maturity influences risk patterns (including cyber and tech-dependent business interruption) and lifts customer expectations for speed, and convenience, which in turn, increases pressure on distribution and operating models. For the insurance industry in emerging economies, digital technology provides opportunities to close large protection gaps with scalable distribution channels.

Figure 1: Average insurance digitalisation index based on income groups