TREND: INCLUDING CHANGE MANAGEMENT WITH TECHNOLOGY IMPLEMENTATION
For emerging technologies to make a difference, they need to be used. Many companies are supplementing technology solutions with change management programs or focusing on delivering solutions promoting behavior changes, especially using gamification techniques. InsurTechs are beginning to emphasize people and processes as much as the technology itself.
What It Means For You
Whether your company is implementing operational or client-facing technology, a focus on change management could have a positive impact on adoption and utilization and your ultimate ROI. For example, in the telematics space, one company is working with existing telematic solutions to improve driver engagement by creating incentive programs. Another company is using technology to develop highly personalized incentives for employees to increase healthy behaviors to create a happier, healthier, and more productive environment.
TREND: BIG DATA IS DISRUPTING THE UNDERWRITING PROCESS
Is disruption by data an asset or a liability? The evolution and availability of new data continue to disrupt traditional insurance underwriting, particularly with catastrophic perils and cyber coverage. In addition to more competition with alternative risk programs, including parametric solutions, we are seeing insurance providers, both established and emerging, consume massive amounts of structured and unstructured data to refine underwriting appetites and models.
What It Means for You
Insureds must be prepared for the good, the bad and the ugly of big data. The insights uncovered from new data sources and algorithms could have a positive or negative impact on rates, limits, retentions and coverage terms agreed to by insurance markets. Understanding the extent of data that is used, controlling the “story” behind the data and leveraging new or alternative insurance products available in the marketplace will be key to managing risk going forward.
TREND: AS RISKS EVOVLE, SO ARE INSURTECHS
It’s clear that the risk landscape is changing as a function of greater societal, economic and environmental shifts. Whether stemming from climate change, digital-forward lifestyles, a focus on inclusion and equity, and so forth, the traditional approaches to evaluating risk and prioritizing company values are being challenged.
What It Means for You
The concept of what is an insurtech will expand as the nature of risk expands and may deliver more value now that company stakeholders, including the next generation of workforce and consumers, are demanding companies prioritize areas such as sustainability, wellness and flexibility as much as the bottom line. Companies should be utilizing innovative technologies and platforms as a tool for managing emerging risks, including their ESG strategy.
A Glimpse into the Future – Insurance in the Metaverse
Artificial intelligence, machine learning and robotic process automation are swiftly shifting from “emerging” to “essential” technologies; how quickly will the insurance industry adapt to transacting in cryptoassets? Or providing comprehensive coverage for NFTs? Or conducting business via avatars? We are excited about all these opportunities, which may come sooner rather than later, and how they will enable us to better serve our customers in a changing world.
Vice President, Insurtech Solutions Manager