The 2018 Tech Trend Radar report by Munich Re emphatically underlines the rate at which it expects new technologies to transform customers’ demands and expectations over the next two decades.
This trend towards greater-connectivity is one that re/insurers must understand, accept and integrate into its framework into to secure longevity, says the report.
Emerging areas such as AI, Machine Learning, and Smart Data are “shaking up business models” and “transforming and remodeling the insurance industry,” according to Munich Re’s Chief Information Officer (CIO), Robin Johnson.
The report makes a variety of predictions for 2018 and beyond, estimating $1 trillion worth of savings thanks to the Internet of Things (IoT) by 2022.
“My personal motivation for the radar is to increase business’ awareness of all the technology capabilities, which will impact our top and bottom lines in the coming years,” added Johnson.
“We need to focus on building business value through technology and information with colleagues and customers for successful, future business.”
Munich Re expects that by 2020, 2.3 million new jobs will have been created by emerging tech verses the 1.8 eliminated.
Thomas Bonaty, IT Strategist, Innovation at Munich Re, commented, “Technology-based innovation arrives faster than most organisations can keep up with. Encouraged, among other things, by competition, the insurance industry has accelerated its activities to seize the opportunities offered by new technologies.”
“The digital imperative has been accepted since digitalisation promises additional revenue from new business fields as well as innovative business models. However, implementation remains a challenging task.”
Despite teething issues highlighted by Bontay, the report anticipates that 5 to 7 digital giants will be disrupting themselves by 2020.
Additionally, it’s expected that visual and voice searches will drive 30% of commerce revenue by 2021.
In order to exploit the benefits of this highly sophisticated marketplace, re/insurers must make sure that innovations are continually integrated where possible.
“Our customers live in a digital world in which they would never want to give up the comfort of their smartphones. They enjoy the assistance they get from Alexa/Echo and are fascinated by the possibilities of industrial IoT,” added Bontay.
“To meet their changing needs and expectations, the insurance industry should invest further in expertise, as well as in hardware and technology, whether this be for data analytics, artificial intelligence, quantum computing or any other emerging trend.”
Also read our sister publication Artemis’ recent article on the changes afoot at Munich Re: Munich Re refocusing on risk + tech + experience?
