Advisen

Insurers no longer 'deer in the headlights' when it comes to technology, say CEOs

By Erin Ayers, Advisen

LONDON—The insurance industry has moved past its fear of being “disrupted” by technology and new ways of doing business and instead sees the opportunity to collaborate rather than compete with tech firms entering the insurance space, according to panelists speaking at the InsurTech Insights conference in London.

Insurers have realized that technology can help deliver better customer experiences, increase efficiency, and deliver products more quickly, according to Amanda Blanc, CEO for Zurich’s Europe, Middle East and Africa division, who spoke on a CEO panel on industry trends at the event held March 19 and 20.

She highlighted a few ventures, enabled by technology, that have improved efficiency such as usage-based insurance, quicker medical review processes, and greater responsiveness on the reinsurance side for brokers. Many changes made by insurers might not seem huge in isolation, but make a difference when taken as a whole, said Blanc.

She emphasized that technology still cannot replaced the human factor in insurance relationships. Technology is a facilitator for insurers, brokers, and their clients.

Insurers have gotten past the “deer in the headlights” stage when facing emerging trends, said Pina Albo, CEO of Hamilton Insurance Group. Now, they are seeking the “value creation that emerging technology has to bring to insurance,” she said, adding that increasing processing efficiency won’t differentiate insurers by itself.

Knowing your organization and your own risk appetite will help insurers make smarter tech investments and decisions, rather than hopping on the same bandwagon as all other companies.

“Everyone was chasing the shiny new toy,” said Albo. “You have to figure what you’re trying to solve for.”

Editor Erin Ayers can be reached at eayers@advisen.com.