PriyaPatel
TLDR:
Insurtech 2.0 is rooted in data management, with AI playing a key role. Experts stress the importance of addressing data quality, optimization, and privacy. AI has the potential to transform the insurance industry by improving loss ratios and internal communication. Insurtechs must focus on addressing pain points and accommodating insurers’ preferences for incremental change to succeed.
Full Article:
Data management is identified as the foundation of Insurtech 2.0, with AI being a significant player in this transformative phase of insurtech advances. Ellen Carney, a principal analyst at Forrester Research, emphasizes the importance of leveraging AI and new technologies to manage the vast amounts of data in insurance operations.
Insurtech 2.0 is expected to bring value and reduce costs in insurance business models, according to Bill Pieroni, the president and CEO of ACORD. While customer service functions like chatbots have become commoditized, AI has the potential to transform other areas of insurance operations.
AI, particularly Gen AI, is likely to have a profound impact on the insurance industry. Darryl Siry, the chief operating and technology officer at Cover Whale, mentions that applying AI to data management and analytics can lead to significant improvements in loss ratios. Siry also predicts that within the next five to seven years, every insurer will incorporate some form of Gen AI.
Steve Anderson, the CEO and co-founder of Catalyit, emphasizes the importance of addressing pain points for insurtechs to last in the industry. Insurtechs should also be prepared to accommodate insurers’ preferences for incremental change rather than radical transformation.
In conclusion, data management and the effective utilization of AI are crucial components of Insurtech 2.0. Insurtechs that focus on data quality, AI applications, and addressing insurers’ pain points are more likely to succeed in this evolving landscape of insurance technology.
