PriyaPatel
TLDR:
- Insurance carriers are focusing on technology and innovation to manage and mitigate risks for themselves and policyholders.
- Key focus areas for carriers include inflation, recession, regulatory uncertainty, and cybersecurity.
Key Elements of the Article:
Insurance carriers are heavily investing in technology and innovation to address risks both internally and for their policyholders. A survey revealed that macroeconomic factors such as inflation and recession are top threats to business growth in 2024. Despite this, carriers plan to increase tech spending in areas that directly interface with customers, such as customer service, sales, and claims. Cloud technology, digital infrastructure, and artificial intelligence are top priorities for digital transformation.
While carriers see the benefits of adopting AI in automating processes like underwriting and claims, there are concerns about the risks associated with the latest versions of generative AI. Many carriers believe AI is too risky to utilize at this point, both for their organizations and their customers. However, there is optimism that AI can improve the identification of fraudulent claims.
Overall, the focus on technology and innovation among insurance carriers is driven by the need to streamline processes, improve efficiency, and provide better customer experiences. Despite the challenges and risks involved, carriers are committed to leveraging technology to stay competitive in the insurance industry.
