Clive O'Connell, McCarthy Denning
Insurtech and data analytics can be used to create products for the ILS market which are widely diversified from traditional risks such as Gulf of Mexico windstorm, says Clive O’Connell of McCarthy Denning.
Twenty years ago, the internet was something that a few people connected to through modems with squeaky connection sounds and slow response rates. Today it is ubiquitous and most people connect constantly to the web through a variety of devices—both knowingly and unknowingly.
The same timeframe covers the development of insurance-linked securities (ILS). In both cases, the speed of development is rising. The past five years, in particular, have seen dramatic and accelerated developments. The next five years promise even more, and faster.
The use of the internet is changing the way the insurance industry operates, from distribution to pricing and even into claims adjustment. Insurtech, the financial technology (fintech) of insurance, is the new buzz word. Insurers are slowly coming to appreciate that they must embrace it. At the same time the entrepreneurs of Silicon Valley and Shoreditch are trying to keep a nimble step ahead of the insurance giants.
McCarthy Denning, Clive O'Connell, Insurance, Reinsurance, Technology, IT, ILS, Insurtech, Data analytics, Latin America, Regulation