The insurance industry is certainly one sector that has viewed technology with suspicion in the past, amid fears of disruption, new entrants coming onto the scene and bringing innovation with them, and the stratospheric rise of comparison websites.
As the Economist observes, a lot of new start-ups are now looking at how they can gain market share of different parts of the insurance process. US quant hedge fund Two Sigma, for example, is planning on using its algorithms to assess risks and set insurance prices quicker and better than a person could. And German company Simplesurance has now incorporated product warranty insurance into ecommerce websites.
So what can be done to ensure survival? Focusing on internal innovation is one strategy (as evidenced by Aviva, which created a digital garage in trendy London borough Hoxton). Alternatively, teaming up with other policy issuers may also be the secret to success in this technological landscape.
Arming yourself with knowledge is also key. Check out this recent report from Deloitte called Insurance Disrupted, which focuses on nine applications of technology that could cause the biggest disruptions to the general insurance industry over the coming decade. Topics include new markets, peer to peer networks and telematics-based insurance.
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