This article is part of Carrier Management’s series on the Future of Insurance.
Chris Cheatham, the Co-Founder and CEO of RiskGenius, traces a path from using machine learning to break down insurance policy clauses and financial data to ultimately enabling smart contracts using blockchain technology.
Q: What major changes do you see on the horizon for the property/casualty insurance industry in the next 10 years?
Cheatham (RiskGenius): I focus on insurance policies (forms, endorsements, declaration pages) because I believe they are the most important part of an insurance transaction. Most parties to an insurance policy don’t really know what is in their policies. Carriers struggle to keep track of their forms and endorsements; brokers can’t identify changes to policies fast enough; regulators have trouble approving new products in a timely fashion; and consumers don’t bother reading their policies.
I think all of this is about to change.
We are on the tail end of insurance companies going “digital.” Most policy documents are now electronic. But these policy documents contain unstructured data—both the clauses and the financial data. This means that insurance professionals have trouble locating and understanding the information in a policy.
All of this is about to change because of machine learning. With smart algorithms, insurance policies will be broken down into clauses and financial data. In the short term, this means more parties will be able to review and understand insurance policies in a timely fashion. In the long term, this will enable true “smart contracts” as individual clauses and limits are tied to the blockchain and IoT.
Read more Future Insights by person
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- Bobby Bowden, Executive Vice President, Chief Distribution and Marketing Officer, Allied World
- Andy Breen, Senior Vice President, Digital, Argo Group
- Adam Cassady, CEO, Tyche Risk
- Chris Cheatham, CEO, RiskGenius
- Trent Cooksley, Head of Open Innovation, Markel Corporation
- Mike Foley, CEO, Zurich North America
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- Mike Greene, CEO & Co-Founder, Hi Marley
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- Dr. Henna Karna, Managing Director and Chief Data Officer, XL Catlin
- Tony Kuczinski, President and CEO of Munich Re, US
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- David W. Miles, Co-Founder and Managing Partner, ManchesterStory Group
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- Mike Pritula, President, RMS
- Kathleen Reardon, CEO, Hamilton Re
- Jeff Richardson, Senior Vice President, OneBeacon Insurance Group
- Vikram Sidhu, Partner, Clyde & Co
- Christopher Swift, CEO, The Hartford
- Rebecca Wheeling Purcell, Schedule It
- Keith Wolfe, President US P/C—Regional and National, Swiss Re
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