Commercial insurers are historically slow to invest in technology. That began to change in 2001 with the emergence of the low interest rate nvironment, and accelerated after
investment income dried up in response to the
2008 economic recession. Insurers were forced to
tighten their underwriting practices. Data analytics emerged as an effective means of mitigating
losses through better risk selection and pricing.
That’s when the modern insurance era began
to take shape.
Now, emerging technologies including blockchain, AI and chatbots, along with new sources of
data such as social media and Io T, create the type
of innovation noise that can make it challenging
for insurers to focus and to identify how to best
utilize their limited IT budgets.
There are two main groups of technologies
in the insurance technology ecosystem. One
group includes foundational technologies — the
enablers of digital transformation. The other is
comprised of ancillary technologies that insurers
can add-on once they’ve developed a foundation
Before insurers adopt ancillary technologies, it
is imperative that they initially focus on the foundational IT infrastructure that drives the modern
ADVANCED DATA CAPTURE
In today’s digital environment, insurers are as
much in the data processing business as they are
in the insurance business.
This poses challenges for insurers going
through digital transformation. Insurers have
already begun modernizing their core systems
but have yet to invest in digital tools that improve
data, management, and analysis.
Typically, as they migrate away from legacy
Technology Adoption Success
IT IS IMPERATIVE THAT CARRIERS FOCUS ON FOUNDATIONAL
TECHNOLOGY THAT DRIVES THE MODERN INSURANCE BUSINESS.