The insurance industry stands at the cusp of a digital revolution. As we approach 2027, Europe’s insurance landscape is preparing for a transformative shift with the introduction of the European Digital Identity Wallet (EDIW). This isn’t just another digital tool; it represents a fundamental reimagining of how consumers and businesses interact with insurance providers and their broker networks.
Breaking Free from Legacy Processes
Today’s insurance experience remains laden with friction. Customers endure cumbersome journeys involving manual data entry, document uploads, multiple verification’s, consent gathering, and contract signing – often repeating these processes across different products and insurers. Despite significant digital advancement, these pain points persist.
The EDIW Promise
At its core, the EDIW functions as a secure digital identity hub on your smartphone. It enables insurance customers to prove their identity, share verified attributes and credentials – ranging from personal information to driving licences, professional qualifications, property ownership certificates, medical records, and digital signatures. This streamlined approach eliminates redundant document submissions and protracted verification processes.
Trust as the Cornerstone
The EDIW’s key differentiation is trust. Unlike existing digital solutions, it provides tamper-proof, verified data with customer identity at its core. This trusted framework allows insurers to make real-time decisions with confidence. The wallet’s ability to integrate multiple data sources while maintaining privacy enables the creation of contextualised policies, transforming insurance from a static annual product into a dynamic, responsive service.
Revolutionising Insurance Products
Let’s engage in some blue-sky thinking about the opportunities that arise from improving insurance services and customer experiences through the use of verified and trusted digital identity credentials. For example;
Motor insurance
The EDIW could transform motor insurance into a dynamic, behaviour-based service. By securely connecting verified driving licence data, vehicle ownership records, and real-time telematics, insurers can offer truly personalised premiums. Imagine a policy that automatically adjusts based on verified cross-border travel, adapting coverage as drivers move between EU countries. The EDIW enables instant verification of No Claims Bonuses, penalty points, and vehicle modifications, eliminating fraudulent claims and reducing administrative overhead. For fleet managers, this means seamless driver additions and real-time risk assessment based on authenticated driver behaviour patterns.
Property insurance
Property insurance enters a new era with EDIW-verified smart home integration. Homeowners can securely share data from certified security systems, flood detection devices, and fire prevention equipment, triggering immediate premium adjustments as safety measures improve. The wallet’s ability to verify property ownership, value assessments, and renovation certificates enables instant policy updates when circumstances change. Claims processing becomes proactive – when verified smart devices detect issues, the claims journey can begin automatically, with approved contractors receiving immediate authorisation through their own verified EDIW credentials.
Health coverage
The EDIW revolutionises health insurance by creating secure bridges between verified wellness data, medical records, and coverage terms. Policies can evolve based on authenticated lifestyle choices, preventive care compliance, and verified health metrics. Imagine premiums that respond to verified gym attendance, regular health check-ups, or successful smoking cessation programmes – all authenticated through trusted sources via the EDIW. For chronic condition management, real-time sharing of verified medical data enables dynamic coverage adjustments and proactive care interventions, potentially reducing claims through better health outcomes.
Dynamic business travel insurance
The EDIW enables a new generation of business travel insurance that responds automatically to verified movement across EU borders. As business travellers cross boundaries, their EDIW triggers appropriate coverage levels based on verified location data, duration of stay, and activity types. Policy terms adjust instantly to accommodate different risk profiles in various countries, while maintaining compliance with local insurance requirements. For corporate clients, this means simplified administration, automated expense management, and real-time visibility of coverage status across their mobile workforce. The system can even verify business purposes through authenticated meeting schedules or conference registrations, ensuring appropriate coverage levels are maintained.
Implementation Timeline and Impact
While insurers must accept EDIW by late 2027 under eIDAS 2.0 legislation, the evolution of wallet and trust ecosystems will be gradual. However, early adoption offers substantial benefits:
- Motor Insurance: Creating seamless connections between licence verification, No Claims Bonus validation, and policy management.
- Healthcare Insurance: Bridging gaps between medical records, claims processing, and real-time authorisations.
- Property Insurance: Transforming claims handling through instant ownership verification and approved contractor networks.
Security and Privacy
The EDIW incorporates state-of-the-art security features, including biometric authentication and granular consent management. Users control data sharing scope, duration, and recipients, with comprehensive audit trails ensuring transparency.
Industry Benefits
- For insurers, the EDIW revolution delivers:
- Reduced operational costs through automated identity and attribute verification
- Enhanced fraud prevention via verified digital identities
- Accelerated service delivery
- Improved customer satisfaction
- Competitive differentiation through early adoption
- Opportunities to provide trust services to the wallet and its ecosystem for commercial benefit
Looking Forward
The EDIW represents more than technological advancement; it heralds a fundamental shift in identity management, privacy, and service delivery. As paper-based processes fade, a new era of secure, simplified, and customer-controlled insurance services emerges. For insurance professionals and consumers alike, preparation for this transition is crucial. The future of insurance isn’t merely digital – it’s verified, secure, and seamlessly integrated into daily life.
What role will your organisation play in this transformation?
About the Author
Adam is a payments professional with 18 years’ experience supporting businesses to adapt their organisations in response to a rapidly changing payments and identity landscape. Adam started his payments journey with Ryanair plc, supporting Europe’s largest low-cost airline to streamline its payment acceptance services across multi-gateway and acquiring bank relationships. For five years Adam was head of programmes and change management with AIB Merchant Services, a joint venture between AIB Bank and First Data (latterly Fiserv). More recently, for 8 years, Adam worked led the payments advisory practice for Deloitte Ireland where he supported Deloitte cross-industry clients to address their most pressing payments and identity challenges.
