Innovation and technology are set to transform the insurance industry, but insurers need to clearly define their objectives to avoid unnecessary failures and expense, say Damian Cleary and Andrew Dunkley in an article published in Insider Quarterly.
The insurance industry has finally moved from talking about innovation to actively embracing new technologies like artificial intelligence (AI) and advanced data analytics. Over $10bn has been invested in insurance technology companies globally since 2015, of which $4.1bn was invested in 2018 alone, according to a presentation at CB Insights’ Future of Insurance event in June this year.
Much of this investment has been spent on data-related initiatives and AI, used for risk assessment and underwriting, product development or to automate insurance processes.
Of the 11 firms taking part in the recent Lloyd’s Lab cohort, almost all were based on either data analytics or AI.
Earlier this year, we launched BLM Innovations, a suite of online analytics and case management tools that use AI and data analytics to create better outcomes for insurers. There is little doubt that innovation and technology will bring huge benefits for the insurance industry, but they will also bring new challenges and uncertainties.
Click here to read the article in full in the autumn edition of IQ.