It is clear that the COVID-19 pandemic certainly fast-tracked the use of technology across many areas of the insurance industry. From policy pricing, claims management, and customer service to underwriting and even risk analysis, technology has disrupted many key functions. Newfound forms of data have inundated the insurance industry, offering a new path to better understanding the market and meeting customer needs. Three technologies have been at the cornerstone of disruption in insurance.
According to a recent PwC survey, a quarter of insurance companies report widespread adoption of AI, up from 18% the year before. Another 54% of companies have plans in place to begin implementing AI. And, 52% of survey respondents accelerated AI adoption plans in the wake of the COVID-19 crisis.
The growth is being fueled by customer demand. Companies are sitting on piles of data that have been gathered over the years. AI is helping executives make better strategic business decisions in addition to helping create innovative solutions that are changing the way the industry functions.
However, maximizing AI investments have been a challenge for some time now. Business subject matter experts, data scientists and technology experts are all needed to help bridge the gap. It is helpful to train the AI system to work more efficiently while leveraging the technology as a centralized hub to best support business units across an entire organization.
Internet of Things
Networked devices now outnumber people. In 2010, people owned 12.5 billion networked devices. It is estimated that by 2025 that number will have climbed to more than 50 billion, according to a recent study.
The devices can help enhance product design, find appropriate distribution channels, and reach more accurate decision making. To date, IoT capabilities have been used to interact with customers and help simplify underwriting and claims processing. New service models, improved safety measures, and optimization of resources have all been possible with the help of IoT. The right strategy and framework in place can unlock answers, helping the insurance industry catch up to the booming needs of customers.
Cloud computing is the backbone of nearly every digital service, from streaming entertainment to IoT infrastructure. Gartner predicts that by 2026, public cloud spending will exceed 45% of all enterprise IT spending, up from less than 17% in 2021. Accelerated by the increased reliance on technology during the COVID-19 pandemic, it is clear that greater technology support is needed in nearly all professional industries. The insurance industry is no exception.
Distribution continues to transform, and the benefits of adapting technology into that transformation are clear. Leveraging the cloud can help companies speed the delivery of change, create more flexible, modular architecture as well as provide easier system management. The right tech talent can better manage these changes, meeting the needs of cloud computing today and setting up the company for success in the future.
With these technologies in mind, Insurance Careers Month takes on a slightly new meaning this year. Nearly two years into a global pandemic that has quite literally reshaped the way we live and work, the insurance industry is at a crossroads. The years of groundwork are being executed, yet the crucial need for technology advancements continues to rapidly grow. Many insurers anticipate an accelerated economic recovery, which can lead to additional digital technology investments in 2022. However, the challenges companies both big and small are facing due to a volatile risk environment continue to be both hurdles and motivators towards technology adoption.
One of the pieces to help overcome these hurdles is talent. Finding the technology experts that not only build the solutions but can also understand the application in insurance is a feat that the industry has been trying to overcome. Now is the time to shift the faces of the insurance industry. Grow the teams to encompass a wide skill set. Help the industry keep up with customer demands, as companies across all industries battle an ever-changing risk profile. Developing the right culture for innovation can help attract the talent that is needed in the insurance industry. Teams that are composed of people with different backgrounds, different experiences, and different mindsets come together with unique perspectives. This stimulates conversation that can produce new concepts.
When diversity, equity, and inclusion become embedded in an organization, and it enables people with different backgrounds and lifestyles to work together, a company can experience greater innovation and make smarter business decisions. Regardless of where an organization stands in the technology disruption process, if it innovates through inclusion, such as incorporating new tech talent, the results can be promising.