Insurers are beginning to feel the need to embrace technology more aggressively
Technology is beginning to shape the future of the insurance industry. Strategy Meets Action has released a new report that highlights the role that technology is playing in various insurance sectors. As various forms of technology begin to play a larger role in society, insurers are feeling the need to adapt, providing new services and products that account for this ongoing trend. Though investments in the tech field have dropped this year, the insurance industry may still see a significant shift due to the rate at which new technology is being adopted.
New technology can spur innovation and the development of new products
Innovation has long been a major priority for the insurance industry. Companies that are able to adapt quickly to new trends by offering innovative services and products typically see more success than others. The report notes that insurers are beginning to change their innovation goals, largely due to outside influences from the tech field and elsewhere. Insurers are seeing a greater need for growth and profitability and the report shows that 38% of insurance companies are focusing on information technology upgrades to satisfy this need.
IT upgrades may help insurers perform better in their favored markets
Focusing on information technology represents the insurance industry’s ongoing work to modernize itself. While insurers have been relatively quick to embrace new technology, many of the world’s leading companies remain firmly reliant on traditional practices and systems, which may be severely outdated. Many insurers have begun focusing on the use of cloud technology, storing consumer information on a secure network comprised of a multitude of different computer systems. Cloud-based systems are also being used for other business pursuits.
Telematics is coming to the auto insurance sector
One of the sectors where the impact of technology on the insurance industry can be seen most clearly is in the auto insurance field. Insurers are beginning to use telematics to offer new, usage-based products to drivers. This insurance coverage is typically less expensive than conventional coverage, making it more attractive to consumers.