Emerging Tech in P&C Insurance: It’s Not About the Technology

By Mark Breading, Partner, Strategy Meets Action

Boston, MA (Dec. 6, 2017) – Insurers are acutely aware that a whole host of emerging technologies are poised to change the industry, in some cases, very dramatically. It is both exciting and scary for industry executives to contemplate the implications of driverless vehicles, artificial intelligence, the Internet of Things, wearables, and many other important technologies. It is also easy to get wrapped up in the technology.

What features do the latest wearables provide? What advanced tech capabilities are being built into vehicles today and how soon will the age of driverless vehicles arrive? How should we assess the various AI related technologies such as robotic process automation (RPA), chatbots, machine learning, and a laundry list of others? There is no question that understanding the technologies themselves are important, but from an insurance point of view, it is not about the technology – it is about what the technologies mean for customers, risks, and operations.

SMA’s recently released research report, Emerging Tech in P&C: Insurer Strategies and Plans Through 2020, explores 13 key emerging technologies in depth. A survey of industry executives yields insights about insurer strategies, plans, and investments for each technology, along with expectations on how far-reaching the impact on insurance may be.

All of these technologies are important in one way or another. The key is in understanding which areas of the business have the potential to leverage various technologies, and how rapidly (or slowly) the adoption of each technology is likely to occur. Assessing business area implications and potential use cases is straightforward, but determining adoption rates falls into the area of educated guesses. Nonetheless, it seems clear to many in the industry that AI, drones, the IoT, and driverless vehicles are a few of the emerging technologies that will have the biggest impact on both personal and commercial lines insurers. Others that have received a great deal of press, such as blockchain and wearables, are also important, but for these, there is less activity among insurers than for the others.

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About SMA

Exclusively serving the insurance industry, Strategy Meets Action (SMA) is an advisory services firm offering retainers, research, consulting, events, and innovation offerings to both insurance companies and solution providers. Learn more about SMA at www.strategymeetsaction.com.

SOURCE: Strategy Meets Action (SMA)

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