As we look back on 2024, it’s clear this year has been a turning point for the risk technology (RiskTech) industry. Many of the trends we predicted in our 2024 Outlook have not only materialized but have started to reshape how organizations approach risk management and leverage technology.
The Rise of Generative AI
Generative AI has transitioned from a buzzword to a game-changing tool. In 2024, RiskTech vendors started to embed GenAI into their platforms at an unprecedented rate, enabling organizations to automate routine tasks, enhance data analysis, and generate actionable insights. From generating safety recommendations based on audit results to assisting with claims analysis, GenAI has proven its potential to increase efficiency and drive smarter decision-making.
Automation and Operational Efficiencies
Automation remained a cornerstone of digital transformation in 2024. Organizations continued to invest in robotic process automation (RPA), workflow management tools, and business intelligence platforms to eliminate manual tasks and optimize processes. This year, we saw RiskTech solutions streamline improve claims processing, automate routine tasks and enhance reporting capabilities.
AI and Machine Learning Integration
AI-powered analytics took center stage in 2024, with machine learning algorithms driving deeper insights into risk data. RMIS platforms evolved from static dashboards to dynamic, predictive tools that allow users to identify trends, mitigate risks, and seize opportunities faster than ever. These advancements have made AI and ML indispensable for risk managers striving to stay ahead in an increasingly complex environment.
Interoperability: Breaking Down Silos
The push for interoperability gained momentum this year as well. RiskTech vendors invested heavily in APIs, middleware, and data exchanges, to enable seamless integration across systems. This interconnected approach will enable risk managers to gain a holistic view of their risks, enhance data accuracy, and improve collaboration across the enterprise.
Demand Fuels Innovation
Perhaps the most exciting development of 2024 has been the pace of innovation. The industry witnessed the launch of innovative tools designed to address long-standing challenges. From advanced analytics platforms to predictive modeling solutions, these innovations reflect the growing demand for technology that reduces risk.
Challenges and Opportunities Ahead
While 2024 has been a banner year, it has also highlighted areas for growth. Data security remains a top priority as organizations grapple with increasing cyber threats. Additionally, as new technologies flood the market, the challenge of selecting the right solution has become more critical than ever.
Looking Forward
The RiskTech industry has made significant strides in 2024, laying a strong foundation for the future. At Redhand Advisors, we’re proud to have played a role in this transformative year. Whether through our research, advisory services, or partnerships, we’ve helped organizations harness the power of RiskTech to achieve their goals. We look forward to continuing this journey with you in 2025.
Here’s to another year of innovation, collaboration, and growth in the RiskTech industry!