This article is part of Carrier Management’s series on the Future of Insurance.

Andy Breen, Senior Vice President, Digital, Argo Group, provided an optimistic vision of the insurance industry’s future to Carrier Management recently, imagining insurers using new data sources in innovative ways.

Andy BreenAndy Breen, Senior Vice President, Digital, Argo Group
Breen has over 20 years of experience developing and growing products and services for companies of all sizes in the mobile, enterprise, ecommerce, media and education sectors.
Breen recently authored an article for Carrier Management titled “How to Combine Underwriting With Unbiased Machines to Improve Risk Evaluation.” http://carriermag.com/h5wsk

Q: What major changes do you see on the horizon for the property/casualty insurance industry in the next 10 years? What will insurance companies, insurance leaders, the industry and its workforce look like in the next decade? What risks will they insure?

Breen (Argo): The insurance industry model has remained the same for many generations—providing coverage to people and businesses based on risk factors. However, over the next decade we may see the industry dramatically shift away from a product focus to a value-added risk management service. For example, instead of using risk information solely to create a policy and pricing, insurers may use that data to help businesses reduce risk/cost and increase revenue.

Through data automation and AI, insurers will begin to further understand the unique risks for each company. And by using new collection methods, such as drones and sensors—information sources not previously available—businesses will be able to carry policies based on more accurate usage [of connected devices] rather than traditional annual or multiyear policies. Usage-based insurance (UBI) is booming and expected to grow to cover 142 million consumers over the next decade, according to Allied Market Research. It’s only a matter of time before we see similar applications for businesses.

By using new collection methods, such as drones and sensors—information sources not previously available—businesses will be able to carry policies based on more accurate usage [of connected devices] rather than traditional annual or multiyear policies.
Yes, this might seem like a big leap. But we already have the tools and technologies, and we’re already beginning to collect the data needed to bring about this new reality. It’s simply a matter of using this new information in an innovative way. The foundation is already in place—the only limits are in our ability to imagine the value and make it happen.

Read more Future Insights by person

  1. Mike Albert, Co-Founder, Ask Kodiak
  2. Tim Attia, CEO and Co-Founder, Slice Labs, Inc.
  3. Arun Balakrishnan, CEO, Xceedance
  4. Ilya Bodner, CEO, Bold Penguin
  5. Bobby Bowden, Executive Vice President, Chief Distribution and Marketing Officer, Allied World
  6. Andy Breen, Senior Vice President, Digital, Argo Group
  7. Adam Cassady, CEO, Tyche Risk
  8. Chris Cheatham, CEO, RiskGenius
  9. Trent Cooksley, Head of Open Innovation, Markel Corporation
  10. Mike Foley, CEO, Zurich North America
  11. Guy Goldstein, Co-Founder and CEO, Next Insurance
  12. Mike Greene, CEO & Co-Founder, Hi Marley
  13. Brian Hemesath, Managing Director, Global Insurance Accelerator
  14. Russell Johnston, CEO, QBE North America
  15. Dr. Henna Karna, Managing Director and Chief Data Officer, XL Catlin
  16. Tony Kuczinski, President and CEO of Munich Re, US
  17. Rashmi Melgiri, Co-Founder, CoverWallet
  18. David W. Miles, Co-Founder and Managing Partner, ManchesterStory Group
  19. Pranav Pasricha, CEO, Intellect SEEC
  20. Mike Pritula, President, RMS
  21. Kathleen Reardon, CEO, Hamilton Re
  22. Jeff Richardson, Senior Vice President, OneBeacon Insurance Group
  23. Vikram Sidhu, Partner, Clyde & Co
  24. Christopher Swift, CEO, The Hartford
  25. Rebecca Wheeling Purcell, Schedule It
  26. Keith Wolfe, President US P/C—Regional and National, Swiss Re