What do they all mean in practice, and how will the industry evolve in 2018? Guidewire Software’s Keith Stonell, managing director for EMEA, gives Insurance Business his top four predictions for the year ahead.
- Insurtech will become boring but more meaningful
“The future for insurtech and other expressions of industry innovation, will lie in how well they are plugged into the mainstream. So, making it through 2018 will require increasingly having old world insurer funding – like FRIDAY has from Baloise – or ensuring your insurtech app comes with an open API to become part of a bigger player’s ecosystem, as Octo or Pypestream are doing with their telematics and chatbot messaging platforms, respectively.
“Undoubtedly, insurtech is generating some great ideas and business models, many of which are going to change the industry, but I see that more through assimilation than outright disruption.”
- Data listening will help insurers monetise managing 21st century risks for their clients
Analysing non-traditional data, crucial to underwriting new cyber risks, has been a dark magic act. Insurers are working overtime to mine data that delivers personalised experiences and products, like Amazon and Facebook do every day, but the industry will mature in 2018 around how it formalises data listening of external sources to evaluate and price new kinds of risks.”
- Dynamic Data Analytics will gain ground with insurers
- Augmented Intelligence rather than just AI will become key
“There are new developments that combine predictive data analytics with machine learning around behavioural analysis, resulting in some interesting new technologies. One example is Cogito. This insurtech continually monitors a human agent’s conversation with a client and autonomously spots where the conversation is flagging. It then recommends to the agent how they can exhibit more positive emotional intelligence. This is a natural fit for the insurance sector and customer management.”
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