Four areas of technological change in the insurance industry
First, the ability to capture more information about risk to use mobility and IoT and a number of different technologies makes it possible to understand risk in new and better ways.
The second big change McLaughlin mentions is artificial intelligence and the ability to analyze data and find insights about both risk and about the underlying end users who have to take action to potentially reduce or eliminate those risks.
The third area is McLaughlin sees is the cloud revolution. "It brings the ability to take all that information and pull it up to the cloud where it can be operated on at-scale, or where you can connect to different data sources, where you can connect to different models, different AI tools and… bring it all together to provide a holistic risk experience."
And of course, McLaughlin mentions IBM's insurance platform: "The fourth big change is the movement of the insurance industry to industry platforms – the idea… [of] insurance as a service, in the way that today we think about cloud computing-as-a-service or software-as-a-service. We now can take the entire insurance stack and provide that via a technology platform on a per-policy, per-year basis. It makes it a lot easier to pursue the innovative models that all these technologies make possible."
We at Neerlandse appreciate these kind of developments. It was platform technology that enabled us in 2012 to develop our flood insurance service. It will be technological developments mentioned by McLaughlin that will enable the insurance industry to enhance insurance practice, delight customers and ensure stable underwriting profits