Insurance Industry Digital Transformation: The changing insurance consumer
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The Insurance Industry Digital Transformation conference at the Swiss Re Centre for Global Dialogue brought together key experts and insurance industry stakeholders to examine how digital will impact consumers in the near and long term. Watch the video below for some expert insights from the event.
A text version of the video is below.
The insurance industry currently is in a massive digital transformation process. We would like to provide them a platform for discussing what the best practices are in this industry and across industries and see what they can learn from each other.
Now's an exciting time for the insurance industry. I'm the CEO of a tech startup, and there are a lot of tech startups in the US focused on insurance. It's really been the final frontier for entrepreneurs and tech companies to tackle, and now's finally the time for insurance. It's been exciting to see tech startups tackle every part of the value chain, from distribution all the way to risk and product manufacturing.
If you go back twenty years, somebody would have immediately, when they needed a policy, they would have probably gone to their dad's insurance broker. That's where it would have started. Now the last thing you would do is go to your dad's insurance broker. The first thing you'd do is go onto Google, and you'd kind of do a search. You'd try and find out a scope of the market. You'd then go and have a look at some rating sites to see how each company fares.
Web psychology is useful because it provides a framework for us to understand how psychological behaviors are expressed through tech. It could be how a certain website gets you to do certain things, or what are the underpinning dynamics on social media, or why do we buy certain things over others, what are the things that are going on there that can tell us something about the behavior of the people doing the purchasing, for instance.
Digital is bringing transparency to the market, and it shifts the power primarily towards the consumer in terms of transparency and the ability to make choices with lots of information at hand, and I think that's going to happen in insurance as well, and it's already happening.
I think there's many technologies that will shape the insurance industry. Some of them will shape the front end, and those are pretty well covered when we think about distribution. But some of the more interesting ones, specifically for me around risk modeling, are artificial intelligence and cognitive computing because they change the questions we ask, and they change the answers we get from the data. This will lead to better risk insights and better management of the risks that we take in today.
Well I think we all realized that the industry is making fast progress. I think a few years ago, we're still at the infancy of the discussion on digital insurance. I think today we have concrete applications, and the time to act is now. I think there's a wake-up call for everyone. That's the main take-away.
I'm a digital optimist, so I think there are threats for people who do nothing or are not fast enough to adopt this technology, but I think it creates massive opportunities. There are obviously downsides that we have to manage, like employment and other things, but I see it really as a massive opportunity for innovation in any industry."