How data and digital innovation are reshaping insurance: Insights from Matteo Carbone

We caught up with insurance innovation expert Matteo Carbone to discuss the trends shaping insurance across the globe – from risk prevention to personalisation and consumer engagement.

As one of the most influential voices in global insurance innovation and technology, and founder of the IoT Insurance Observatory, Matteo Carbone has spent years advising insurers around the world. Sitting down with Vitality Chief Editor Adam Saville, he described a sector at a tipping point – driven by changing consumer expectations, digital engagement, and the growing recognition that risk mitigation is as important as risk coverage.

Traditionally, insurance has been rooted in indemnification – stepping in when something goes wrong. But this model is no longer enough. As Carbone explains, “More and more insurers … are adding protection services around the contract, trying to help the policyholder avoid bad things from happening”.

For Carbone, this shift to risk prevention as a core aspect of the insurance contract is one of the “most powerful trends reshaping the sector”.

This shift is also being driven by changing consumer attitudes and expectations across global markets. People increasingly expect insurers to offer tools, insights and incentives that meaningfully reduce risk. Prevention, early detection and positive behaviour change are becoming strategic imperatives across health, life, auto and even property insurance.

The power of connected, personalised engagement

When asked where insurers often fall short, Carbone points to customer engagement in the digital era. Despite huge technological capability, many still rely on infrequent, generic interactions. As he puts it: “Frequent contextual and personalised touch points are better than infrequent and impersonalised touch points.”

Insurers that are able to collect and apply data meaningfully are better positioned to influence risk, drive behaviour change and deliver real value. “The more the insurer is able to collect data … and use this data to personalise interactions, the higher the ability to engage with the policyholder and impact the level of risk,” he explains.

This thinking underpins Vitality’s Shared Value model – and Carbone highlights the importance of such an approach in a historically traditional industry. Reflecting on a decade of engagement with Vitality leaders, he notes: “I learned … the ability to design value propositions that provide policyholders with the opportunity to share verified data and obtain incredible benefits.”

“This is a necessary capability for the insurer of the future,” he adds.

Innovation spreads when one player leads

Carbone also highlights how innovation takes root. Often, it only takes one bold player to redefine the rules: “You need one insurer in one local market that will do something exceptional … and competitors feel the fear of missing out.”

He points to Discovery in South Africa, where behavioural insurance emerged 30 years ago, and Japan, where insurer-provided car dashcams now number in the millions – powerful examples of how one breakthrough can accelerate industry-wide change. “This pushes the market forward … and that’s better for everyone, especially customers.”

From prevention services to connected engagement and shared value, Carbone’s insights reveal an industry in rapid transition. The insurers that succeed will be those that help customers live healthier, safer lives – not just protect them when things go wrong.

 Watch the video here