If you’ve got your eyes set on technology that won’t move the needle this year, it’s time to reevaluate what can provide bottom line results in the short term. AI and machine learning will have their day in commercial insurance. But what are you doing today to drive tangible business results? InsurTech does not have to be a “pie in the sky” endeavor. It can be deployed right now.
Alpe d’Huez is a legendary climb, world-renown by cyclists. A relentless 8.5 miles with 21 hairpin bends and 8.1 percent gradient, it’s been a stage that can make or break the Tour de France for riders. But, it’s not included in every Tour. This epic climb only comes once in awhile. And, what’s important about it is the decisiveness of Alpe d’Huez in determining the overall leaders. Historically, the winner of the entire Tour has often been in the yellow leader jersey following the Alpe d'Huez stage. Meaning, how riders compete on this one stage is critical in determining the outcome of the entire race.
With the rise of InsurTech, the new world of insurance is indeed a playing field—players jockeying for positions, making plays, aligning their teams, and acquiring new ones. Then, there are those who aren’t really sure what position they’re supposed to be playing. For these reasons and more, the sports world is relevant to the present state of InsurTech—it requires a game plan and guts. You can either stay on the bench and watch it unfold, or get in the game and start making plays.
When I first discovered how well the insurance industry collaborates, I was blown away. As an outsider, learning how agents, brokers, carriers, and reinsurers all work together to identify, write, and share risk was both overwhelming and fascinating. I was impressed at how multiple insurers participate in sharing a single risk and how each does so leveraging its unique strategy and specialty. An industry that initially seemed boring to me became artful and fascinating, even noble. I continually reflect on how this level of collaboration and risk sharing makes tremendously ambitious projects—from skyscrapers to city centers—possible. And yet, surprisingly, this industry that is so fundamentally built upon collaboration seems to lag far behind its peers when it comes to technology innovation and collaboration.
Women are strong in insurance, making up a large percentage of the workforce (from 45-85 percent depending on the profession). Yet despite this strength, women like Inga Beale and Karen Clark comprise only 8 percent of named executive officer positions and 17 percent of board seats. What about women in the tech industry? As an InsurTech company, we thought Women’s History Month would be a good time to take a closer look.
“We got cows!” This memorable line from the movie Twister came when a cow was hurled by a tornado in front of a truck driven by two storm chasers. A tornado can pick up just about anything, and while flying cows may not be on most insurers’ minds, they do need to worry about the impact 200+ mph winds could have on their books of business.
InsurTech, or digital information, isn’t just about Internet of Things (IoT), blockchain, wearables or telematics. A key digital transformation initiative, and competitive differentiator in the digital age, will be advanced data and analytics. And, innovation in data analytics is a big chunk of the $185 billion global insurance technology spend in 2017. If you’re struggling with legacy systems, lack of visual analytics, data inaccuracy and disparity (among many other analytic challenges), it’s time to make advanced data and analytics a transformation priority.
This 2-minute infographic shows how and why to bridge the technology gap with InsurTech for better data and analytics: