
How digital identity is reshaping insurance in 2025
Considered one of the more traditional sectors among financial services institutions (FSIs), the insurance industry is working hard to
First and foremost, insurance digitisation requires secure and verifiable digital identities that meet mandatory due diligence and Know Your Customer (KYC) requirements. Without them, any meaningful transformation to digital-first operations is unlikely.
Moreover, creating secure digital identity for the insurance industry is increasingly crucial as regulations controlling data management and ICT systems in FSIs in the EU continue to rise, and as cybercrime and security breaches become increasingly sophisticated.
Below, we share 5 ways in which digital identity tools can support insurance companies in their digital transformation:
Insurance identity verification for faster onboarding and automated KYC
The foundation of digitising insurance processes is having the means to reliably conduct identity verification and KYC when onboarding clients. This is especially crucial as
There are several certified and regulated digital identity platforms that insurance companies can rely on to
Choosing the best digital ID platform for insurance companies requires taking several aspects into account:
First, digital identity platforms vary in the range of services that they cover, from identification and authentication to qualified e-signature and data sharing, among others. Being a highly regulated industry, however, insurance will benefit from digital identity tools that cover as many applications as possible (such as
itsme ® ).Insurers also need to consider the certifications that each digital ID platform has (e.g. ISO standards or eIDAS compliance), the regulations that they comply with (e.g. GDPR, PSD2), and where they store their data.
Last but not least, digital identity platforms differ in their compatibility with existing workflows, which influences how they are adapted, integrated, and scaled.
Speeding up claims processing in insurance
Insurers often request paper-based documents to process claims, such as signed medical reports, invoices and passport scans. This is done to ensure authenticity of the evidence and for insurance claim fraud detection. However, relying on physical evidence gets in the way of digitisation, and all the enhanced trust and speed it can bring the insurance sector.
Digital identity platforms provide secure digital
Insurance leader
Policy and document management
To transition to digitised operations, insurance companies need to ensure digitising two key applications: signature and authentication. These processes are essential for enabling a completely digital policy and document management system.
Digitally signing new policies and insurance certificates requires choosing the right type of e-signature, since
itsme® stands out as one of the few
Authenticating clients digitally enables insurance customers to securely modify policies, authorise policy changes or cancellations, and access policy documents and other official records. Digital authentication safeguards these actions with
Processing insurance payments
Digital ID platforms further enhance the security of online payments in insurance and expand their scope, from authenticating premium payments and verifying claim payouts, to setting up or modifying payment arrangements.
By authenticating insurance payments through multi-factor, passwordless logins, digital identity platforms add an extra layer of security, helping insurance companies integrate online payments with very minimal fraud risk. This is because passwordless authentication is much more secure against account take overs (ATO), credential stuffing, identity theft, and other types of fraud.
Regulatory compliance in insurance
Digital ID platforms help insurance companies eradicate costly and time-consuming physical processes with digitisation, enable them to utilise the legal instruments prepared by the European Commission to empower the
Digital identity tools can help European insurance companies comply with key regulations such as eIDAS, GDPR and Digital Operational Resilience Act (DORA), by providing secure, verifiable identity management and data protection.
For instance, by employing highly secure authentication methods and minimising data exposure through
Moreover, digital identity solutions support compliance with the (DORA) by ensuring robust authentication and authorisation processes that maintain secure and reliable digital operations. To learn more, visit the dedicated blog we created about
Lastly, electronic identification (eID) platforms that also provide qualified electronic signatures help insurance companies to comply with Electronic Identification, Authentication and Trust Services (eIDAS) by ensuring legally binding agreements and compliant transactions across the EU.
Conclusion
While their road to abandon analogue procedures and paper-based evidence is still long, insurance companies can already make use of specialised digital identity tools to digitise, secure, and significantly speed up client verification and KYC processes. Some of those tools, such EU-based