Upgrading technology is currently the number one concern for re/insurance industry leaders, according to a 2018 InsurTech report by AdvantageGo, the software product family from NIIT Technologies.
The report, which surveyed 30 c-suite re/insurance executives from around the world, found that industry leaders are becoming increasingly concerned about the pace at which their companies are keeping up with technological advances.
However, almost all respondents said they viewed emerging technologies, such as machine learning, artificial intelligence (AI), blockchain, robotics, and the Internet of Things (IoT), as an opportunity rather than a threat.
Other high-ranking priorities in the survey included underwriting discipline, regulation, cybersecurity, and mergers and acquisitions (M&A).
Adrian Morgan, Executive Vice-President and Head of AdvantageGo at NIIT Technologies, commented: “Whether companies want to be ahead of the game or are simply anxious about being left behind, all sectors of the market are taking InsurTech seriously.
“The survey has highlighted a key dilemma with which the industry is currently grappling: on the one hand, there is an overwhelming recognition of the need to improve technology, but on the other, there is a concern about the rate at which the industry, as a whole, is adopting InsurTech solutions.”
AdvantageGo’s survey found that 76% of executives were currently involved in data analytic and big data projects, while more than half were developing projects that involved machine learning (55%), AI (52%), and blockchain (52%).
The expected benefits of these projects included streamlining costs and processes, improving insights for underwriters, and increasing efficiency through a combination of actuarial insights and AI algorithms.
One North American respondent explained: “The industry is at the beginning of a transformational stage. As younger employees who have grown up with technology begin filling more senior roles, they will demand new ways of interacting with clients, and as such this will present an opportunity for InsurTech to fulfil this void.”
Only a third of executives said they were currently developing in-house InsurTech specialities, with most companies preferring to partner with external vendors due to a lack of technological expertise.
Morgan continued: “Our survey shows the value placed on partnering with proven providers that marry technological know-how with deep industry expertise.”
Additionally, less than half of respondents said they were hiring enough staff to meet the demands of InsurTech developments, with many suggesting that they have struggled to recruit younger tech-savvy staff, who tend to prefer working for start-ups.
