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How the emerging technologies are affecting insurance industry?

With the emerging technologies, organizations have access to a huge amount of data which is leading them to big data and analytics. The progression of the data and analytics yields the advanced concept of Artificial intelligence which is capable of predicting and identifying the patterns among the innumerable cases of the industry.

Recently new Novarica conducted a study on 104 insurers to track deployment and pilot plans of emerging technologies. The report was published under the title of Emerging Technology in Insurance: AI, Big Data, Chatbots, IoT, RPA, and More. According to this report: Artificial intelligence, augmented and virtual reality, big data, blockchain, chatbots, drones, robotic process automation, sensors and telematics, smart home automation, and wearables are classified as “emerging technologies”

Matthew Josefowicz, president and CEO of Novarica, and lead author of the report indicated that most of the insurers are interested in knowing what can we do with this emerging technology? Instead of showing their interest in knowing what do we need to do and how might new technology help. Moreover, he added, “Starting from the need can help insurers avoid technology-led business cases that result in a lack of business interest, failure to operationalize new capabilities, and no return on investment.”

Deployment of emerging tech among insurers
Figure 1: Deployment of emerging tech among insurers

 

Important findings of the report are as follows:

  • People adopting emerging technologies early are more successful. Although the ratio of early adopters is one in four but they are reporting positive ROI notably in analytics, drones, and RPA.
  • The report also emphasized that half of the insurers have already availed predictive analytics in various fields.
  • The pilot activity in machine learning and big data is high
  • From the past one year rate of deployment and pilot activity is steady. There is no dramatic investment.

 

Source: Novarica Research 2019

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