New report by Swiss Re reveals importance of Digital Trust

Global reinsurer Swiss Re has released a new study outlining the importance of Digital Trust. The report calls the element a “critical currency earned by companies who demonstrate their ability to provide safe, reliable and ethical online programs or devices to their users.”

Swiss Re’s data reveals that organisations must establish digital trust through a series of steps. It also addresses how the re/insurance industry looks set to shape how digital trust is secured and maintained.

In a statement about the report, Swiss Re says, “Digital trust is earned by companies who have demonstrated their ability to provide safe, reliable and ethical online programs or devices to their users. The benefits of having digital trust may not be easily visible, yet the cost of losing it can be huge.”

New technologies are redefining the insurance industry

While digital technologies provide a wealth of solutions, they also currently pose a host of risks. For example, misinformation about how to stay healthy removes years from human lives and also costs the global economy an estimated US$1trn (1.1% of global GDP) per year.

Furthermore, the reputational damage suffered by organisations from digital trust issues can be massive and complex to regain once lost.

The role of misinformation cannot be downplayed. For example, chronic diseases such as cardiovascular disease and type 2 diabetes are largely caused by poor nutrition and lack of exercise, yet an alarming amount of online information about how to eat healthily and stay fit is misleading or even false, the report shows.

It goes on to that that this misinformation not only results in the loss of valuable years of life, but also costs close to USD 1 trillion (USD 962.81bn) per year globally, representing 1.1% of the world's GDP, estimates Swiss Re Institute in its latest expertise paper, "Decoding Digital Trust".

Advanced business practices are improving cybersecurity 

The Swiss Re report outlines the impact of digital technologies and how digital trust is obtained. According to PWC’s 2022 Global Digital Trust Insights Survey, organisations that use the latest business practices are twice as likely to have made critical progress in cybersecurity management since 2020.

Subjects covered in the report outline:

How insurers, who already serve to build trust across societal sectors, can be conduits of digital trust. Notably, the report notes that the global cyber insurance market is expected to grow to over $25bn by 2026.

How technologies such as blockchain can improve trust and transparency and bolster the “trust quotient” in insurance.

An overview of the “Digital Trust Pyramid” – a nine-step methodology to promote a better understanding of the concept and as a lens through which to approach digital trust.

Speaking about the reports findings, Christoph Nabholz, Chief Research Officer at Swiss Re Institute, explained, "As a reinsurer, trust is a fundamental part of our business. In simple terms, when you buy an insurance policy, you receive a promise that we will provide you with financial recompense should disaster strike – and you will trust us to keep our promise. 

“In a world where tech innovations are changing the way we live our lives, including how we manage our health and possessions and much more, digital trust has become of utmost importance."

Moses Ojeisekhoba, CEO of Reinsurance at Swiss Re agreed, saying, "Providing our clients with reassurance that data will be handled responsibly is a prerequisite for realising the full potential of digital technologies.”

He added, “In the reinsurance business, digital trust lays the foundation for all of the digital products and solutions that we create and develop. Building, earning and keeping digital trust cannot be underestimated."