It’s important to take a close look at the insurable risks being created by disruptive technologies.
By Pat Renzi, Principal, Life Technology Solutions, Milliman.
Articles, posts and discussions on InsurTech are certainly not in short supply. I found Ali Safavi’s TechCrunch article, “Why the largest insurance companies are pouring into Silicon Valley,” interesting. He does a good job of enumerating the reasons why the insurance industry is “ready to innovate the industry.”
As Mr. Safavi notes, there are significant opportunities for insurance companies to better leverage technology through InsurTech startups to improve the customer experience, reduce the friction around underwriting, and streamline inefficient legacy processes to reduce operating costs. But what I found most interesting was the focus on how technology is creating a whole new market for insurance as it changes the risks we face. Whether it is due to the shared economy, driverless cars, or hopefully our ability to travel to Mars, insurers need to be thinking about how to protect their policyholders against these changing and emerging risks and not simply how to streamline customer service.
It’s an exciting time for the industry, and insurance leaders must be ready to adapt, create, and respond to disruptive technologies that change the risks we face, so we continue to protect the health and financial well-being of our society.