Insurers must change as fast as technology and innovation

Technology has the potential to make the insurance industry far more accessible—and grow its customer base in the process. But only if it can adjust quickly enough.

That is according to Charlie Doyle, director, THB Treaty, THB Group, who stresses that, given estimates that 20 billion devices will be connected to the internet by 2020, the industry must keep pace with technology and innovation.

“I do believe that we are moving forward, but is it fast enough? As a Lloyd’s broker, THB supports the Lloyd’s Placing Platform Limited (PPL) placement scheme. Companies that move swiftly and decisively will have satisfied customers, lower costs and higher returns.

“Innovation, leading to the greater understanding of risk, will be the key to success in the coming years and companies cannot move fast enough,” Doyle said.

He stressed that given that most insurance or reinsurance products are supply-driven, with the application of technology and government support, insurance can be more accessible. A good example of this is the Crop Insurance Scheme in India.

“New legislation, blockchain technology and the use of the national banking system as an administrative platform have resulted in 40 to 45 percent of crop land now being insured. It was 15 percent three years ago. The mechanics of this scheme could perhaps be looked at in other continents,” he said.

But he warned that the industry should not lose its personal touch: “Nothing replaces the value of a face-to-face conversation or a discussion on the telephone We ignore this at our peril.”