5 Key Insurance Themes on Emerging Technology
November 9, 2015 12:21 PM
SMA's Mark Breading is a longtime champion of emerging technologies in insurance. After identifying 12 digital offerings poised to shake up the industry, Breading held discussions with insurers to find their pain points in adoption.
Speed to Market is Important But the Speed OF the Market is Even More Critical
"Thirty percent of P&C insurers expect the Internet of Things, drones, wearables and payment technologies [like Blockchain] to have an impact in the next three years," Breading says. "Whether you as an insurer are adopting it right now or not, the world is adopting these techs."
Emerging Technologies Create Opportunities But Also Pose Significant Threats
"There's a possibility for new products, coverages or services based on the data" from emerging technologies, Breading says. "But the whole landscape of risk is changing. If we get the driverless vehicles, and the manufacturers accept liability, what do you need car insurance for?"
The Potential of Emerging Tech is Great But Insurers Must Convert to Value Propositions
"You can get caught up in how cool the techs are, but whats the value proposition?" Breading asks. "Gamification technology, for instance, can be used in needs analysis to drive more sales."
In the Connected World, Data is Central to All But Worthless Unless Leveraged
"Were going to be collecting all that data, but how do you gain insights from that and take action that gives you advantage?" Breading asks. Insurers must develop strategies, technology platforms, and human capital that can get the most value out of data.
Innovation is Essential But Must be Put into Action
"Innovation has to be end to end, not just a great process for ideation," Breading says. "You need to have a whole mechanism to put ideas into action."