How can insurance companies benefit from PSD2?

The EU’s Payment Services Directive 2 (PSD 2) was designed to encourage innovation and competition by opening the market to non-bank providers as well as to stimulate banks into developing innovative services outside traditional banking. It obliges banks to give authorised access to their customers’ accounts to third parties so they can retrieve bank account data and initiate account-based payments.

Using these new functionalities insurance companies can develop customer-centric products by accessing their customers’ bank accounts and payment information. This valuable information provides the insurer with insights to offer customers personalised offers and reduce costs by better risk management.