Has insurance become too reliant on technology?

Has insurance become too reliant on technology? | Insurance Business

Has insurance become too reliant on technology?

The industry seems to have finally warmed to tech – but has it truly reached a tipping point yet?

Pascal Millaire - CEO - CyberCube Analytics
“Not only are insurers not too reliant on technology, they are insufficiently reliant on technology.According to Deloitte, insurers spend 3.6% of revenues on technology versus 7.2% for other financial services segments. This manifest itself in cumbersome human interactions for customers, highly manual processes for insurance staff and inflated expense ratios. But the future looks bright. Not only will new technology tools enable insurance professionals to focus on higher-value and more interesting work, but over time, internet-connected technologies are creating a once-in-a-lifetime opportunity for carriers to insure against new technology risk pools.”

 

Gary Gardner - SVP of national sales - Sedgwick Canada
“Changes in technology are reshaping the insurance industry, and these advances are making processes more accessible, improving the way in which companies perform their functions and enhancing the experience of policyholders. Technology is making processing of claims more efficient, yet the industry remains rooted in human trust and relationships. While claims with greater severity, such as CAT losses, fire or a terrorist attack, require an increased level of expertise to deal with complex problems and perform adjudication, these are skills that our specialist adjusters have, and they remain just as critical today as they will be tomorrow.”

 

Armand Ferranti - Accelerate partner - AXA XL
“Not at all. Contrary to all the innovation and insurtech news we read today, many insurers continue to operate in the traditional environment. But we’re certainly in a transitional period. Technology is starting to heavily assist insurance businesses, empowering underwriters to make wiser, data-driven decisions; enabling a closer interaction with clients; providing ways to understand risks better; and more. Legacy systems and manual processes are still very much at the core of operations. The trend certainly indicates that tech can improve expense ratios and efficiency. It’s only a matter of time before more companies adopt these solutions.”