There is an increasing amount of capital flowing into the insurance industry in search of innovative solutions. This session at the 2018 Advisen Casualty Insights Conference highlighted the technological advancements in which the industry is investing and why.
- Audrey Rampinelli, Senior Risk Executive, Vice President, Risk Management (Moderator)
- John Heveran, SVP and CIO of Commercial Insurance, Liberty Mutual Insurance
- Alex Schwarzkopf, CEO, Co-Founder, Pillar Technologies, Inc.
- Sarah Street, Director of XL Innovate, XL Catlin
InsureTech is the term used to describe the various technology solutions impacting the insurance industry. It is based off the idea of taking processes and data in the hopes of changing processes for the better. It combines entrepreneurs, investors and end users, all with the same goal of innovating.
This is happening now for a few reasons. First, there is more data available than ever before and, second, the technology is finally here. The dialogue is also changing. The industry is increasingly receptive to collaborate with entrepreneurs that bring no insurance background, which offers a completely fresh perspective on how to improve.
The value proposition will be changing for everyone. New tools are changing the risk profile of various jobs, which will impact risk control and claims. Predictive models are being developed to help underwrite submissions more effectively. Code is being written to file claims more easily and efficiently.
As InsureTech advances, it appears as if tools are likely to automate processes to enhance the consumer experience in personal lines. In commercial lines, tools are more likely to augment processes.
Two billion dollars was invested in 2017, alone, with 125 funding deals identified in the property/casualty industry. Most of which are geared towards enhancing the value chain, not to replace people.