PriyaPatel
TLDR:
Key points:
- New technology can be harnessed by insurers to gain a competitive advantage in the industry.
- Emerging technologies can drive success for innovative carriers, leading to significant growth and market share increase.
Increasing Market Share and Financial Health for Insurers
Today’s insurance industry faces unprecedented challenges, including increasing CAT risks, higher customer churn, rapidly advancing technology, and monetary inflation. It is essential for insurers to leverage new technology to gain a competitive advantage and maintain market stability.
A significant challenge for insurers is overcoming limitations imposed by legacy technologies and cultural inertia. Integrating new partner APIs quickly is crucial for innovation and growth. Despite the perceived high costs, investing in new technology is essential to maintain a competitive position.
The trillion-dollar insurance industry is undergoing various technological evolutions. Adapting big-tech predictive engines of human behavior can significantly impact insurance risk prediction. Automation of tech platforms enables carriers to build actuarial loss models quickly, leading to loss ratio reductions and cost savings.
Achieving big-tech benefits for insurance is complex and involves many challenges, such as regulatory compliance, identity resolution, and deploying new technologies. Insurers must strategically partner, license, or acquire technological capabilities to stay competitive.
Partnering with companies that comply with privacy and information-security frameworks is crucial. Adapting stricter standards related to fairness in insurance rating and underwriting prepares insurers for future regulatory changes and opens up new market segments.
Gaining strategic capabilities through technology partnerships not only helps insurers compete and grow market share but also promotes fairness and efficiency in predicting insurance risk.
