The insurance industry is experiencing a convergence with technology that is transforming the way it develops products, underwrites, prices and sells policies, and services its customers. This change can seem disruptive, so it’s critical that insurance companies better understand how technology and digitalization can be an enabler and help them succeed in today’s business environment. Executive SummaryThe insurance industry increasingly will find it necessary to team up with InsurTech companies and reinsurers in order to harvest and analyze data as they develop coverage and pricing for new exposures such as cyber risk, the sharing economy, the gig economy, intelligent homes and autonomous vehicles, writes Stephan Hochburger of Munich Re.
In a recent poll conducted by Munich Reinsurance America during a National Association of Mutual Insurance Companies InsurTech trends webinar, insurance industry participants were asked to name the top three technology factors they are confronting. Of the roughly 350 respondents, 82 percent named data analytics as a top concern followed by improved customer experience (71 percent) and new products/services (61 percent). Insurance companies that can successfully navigate each of these concerns will have a much greater chance of succeeding in today’s highly competitive business landscape.