Insurtech a big concern: survey
The challenge of how to respond to insurtech is one of the biggest concerns of top executives in the industry, according to a survey conducted earlier this year by AdvantageGo, part of NIIT Technologies.
Adrian Morgan, executive vice president and head of AdvantageGo, said the findings also revealed that most executives are comfortable partnering with external firms in order to ensure they have the right strategy and expertise in this regard.
“We conducted an insurtech survey earlier this year and some of the findings were surprising,” Morgan said. “The number one concern for C-suite industry executives was the need to upgrade their company’s technology.
“Most respondents said that in order to do this, they are looking to partner with tech firms to help them find the best products and implementation strategy for their specific needs, and that they are exposed to far greater opportunities working with an expert than working alone.
“Almost half of the respondents (44 percent) said they were hiring staff to meet the demands of insurtech developments.”
He said the biggest focus of executives seemed to be around the area of big data and analytics. This finding was backed up by the findings of a roundtable discussion the company hosted on Bermuda earlier this year.
“Our survey found the initiative most companies were involved in (75 percent of respondents) was the area of big data and analytics. Our roundtable discussion in Bermuda earlier this year brought out some very interesting observations on data, including the assertion that brokers had the best opportunity to capitalise on the huge amounts of data they have access to, and that it would be a mistake to disintermediate them from the value chain,” Morgan said.
“Harnessing data and making sense of it is where the future of re/insurance lies. Artificial intelligence and machine learning will help make this a reality. Risk mitigation models that detect and prevent risk, and the ability to provide dynamic pricing, will also be key to the new products carriers are offering.”
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