So, where’s the transformation coming from? The future of pensions lies not just in infrastructure, but in reimagining the user experience.

Industry is at a threshold of paradigm shift embracing the new technological innovation through Artificial Intelligence (AI) and other intelligent technologies.

A study done by McKinsey states that across the globe’s insurance industry, improvements in productivity and personalisation with AI implementation could rise annually up to 1.1 trillion-dollar value.

AI will redefine how we engage with customers through empathetic, voice-enabled service, predictive product recommendations and real-time sentiment-driven support. Industry is looking at strategically moving towards greater operational efficiency and improved customer experience adopting intelligent automation tools like RPA, Natural Language Processing (NLP) and advanced AI including conversational AI to drive faster turnaround and unlock deeper insights and intelligence enabling better customer services.

One of the longest-standing problems in the industry, data inconsistency, is being addressed in large part by advanced data platforms. Actuarial functions will now evolve from retrospective analysis to forward-looking design, using machine learning models to create truly responsive, market-aligned products in the best interest of the customers.

This means products that evolve with peoples need and not years behind them.

Blockchain will anchor trust enabling secure, auditable and smart data exchanges across providers. It will be a game-changer for industry-wide collaboration, offering seamless member handovers, milestone-based smart contracts and dispute-free claim settlements.

The industry needs to keep up with the global trend of mobile-first. A key component of success measurement is empowering individuals with intuitive, self-service tools that will not just enhance satisfaction but will reshape expectations. But none of this will take shape on its own. The future requires intent and leadership. Organisations across the world are increasingly investing in platforms that are modular, agile, and centred around people--not just processes.

With Global InsurTech and PensionTech funding reaching $1.1bn in Q3 2023 is the latest evidence of traction behind the move to digital-first models. This shift reflects a deeper transformation: from process thinking to experience thinking, from cost containment to value generation, from legacy compliance to future-ready governance.

The future of the pension industry is to evolve with Pensiontech transforming the industry through data-led decision making along with ethical AI and human centred design at scale. The industry isn’t simply preparing for what’s next--it’s actively shaping it.

This article is authored by RK Rangan, chairman & president, Aptia Group India.