Insurance technology

Advancements in technology such as the ubiquity of mobile phones, better data analytics, national identification systems, satellites, and drones is allowing insurance providers to reach new clients, automate back-end processes, improve risk identification and reduce costs. With digital solutions, such as telematics and the Internet of Things (IoT), allowing instant individual pricing, real-time data collection and automatic claims processing, new insurtech providers and new products are emerging in mainstream insurance such as usage-based and on-demand insurance.

Technology is also enabling insurers to move from just carrying risks to provide broader range of services to better prevent, mitigate and manage risks. By providing risk management advice and relevant value-added services, it may enable insurers to provide a more attractive offering to underserved market segments. This promise is yet to be realized, but providers that we are working with are using digital technology to build more client-centric products, improve risk identification and enhance client servicing and communication

The insurance industry is bracing itself for these changes, but what do they mean for the development agenda? It is important to note that these technological advancements come with risks themselves, especially as it pertains to data protection and client privacy. The exclusion of high-risk persons due to the higher availability of information about individual policyholders to insurers is another important concern that we need to keep in mind.