Emerging technologies like artificial intelligence, sensors, robotic process automation, smart home automation, and chatbots are not yet widely deployed among property/casualty insurers, according to a Novarica report.
But many of these areas are showing positive results and are poised for growth, according to a Novarica statement about the report titled, Emerging Technology in Insurance: AI, Big Data, Chatbots, IoT, RPA, and More.
To compile the results, research and advisory firm Novarica analyzed the results of a study of more than 100 insurer CIOs—in both the P/C and life/annuity segments, tracking not just deployment but also pilot plans across a dozen new technology areas classified as “emerging.”
A chart presented with the media announcement about the report (attached below) shows that even some of the more popular emerging technologies—big data, telematics and drones—are being used by less than 40 percent of P/C insurers surveyed by Novarica. Even for predictive analytics, Novarica’s survey came up with a less than 50 percent deployment rate, although pilot activity for mobile and predictive analytics is “approaching ubiquity,” the announcement said.
“Technology changes faster than culture and practice at most insurance companies,” said Matthew Josefowicz, President and CEO of Novarica, and lead author of the report. He suggest that insurers wanting to “fully leverage the capabilities enabled by emerging technology should look at their products and processes in the light of new technical, market, and customer realities.”
“The growth of these capabilities should lead to improved risk selection, streamlined processes, and better business results for insurers in 2018 and beyond,” Josefowicz said.
Among the key findings of the report:
- The most pilot activity is in digital and analytics areas like artificial intelligence, big data, sensors, drones, RPA, and chatbots. Insurers are looking to these technologies to improve risk selection, claims, service, and operating efficiency.
- P/C insurers are more likely to focus on underwriting and claims, while life/annuity insurers are more focused on marketing and service when leveraging emerging technologies.
- Areas with low consumer adoption aren’t generating much interest from insurers yet. Augmented and virtual reality, blockchain, smart home automation, and wearables are still over the horizon for most insurers.
The full report is available online at https://novarica.com/emerging-technology-in-insurance-ai-big-data-chatbots-iot-rpa-and-more/