Insurance brokers and specialty/large commercial carriers have long lagged behind other segments when it comes to automating communication. This is the result of the inherent complexity of the market, as well as an ingrained preference for email due to the cultural belief that it is more personal. Further complicating automation efforts are looming cybersecurity issues that are in constant flux with respect to regulatory and market changes.
Through Novarica research consisting of in-depth conversations with over a dozen broker and carrier executives, it is clear that many carrier CIOs are looking towards the adoption of new technologies, both custom and vendor, to support digital strategies and operations. However, broker CIOs tend to be more hesitant and conservative in investing in advanced technology. This hesitancy is likely a result of the unique challenges during the underwriting process for specialty and large commercial risks.
Despite the unique challenges, new technologies may be faster and more accurate, and they enable a personalized exchange of insured and risk information. Both insurer and broker CIOs should be monitoring and adopting emerging technology in order to simultaneously navigate mounting security issues and prepare for the transformative effects of predictive analytics and artificial intelligence that have already been seen across the industry.
With the increasing number of emerging technology options available to leverage in 2018, broker and carrier CIOs should consider how this technology can be used to standardize data models and business processes, gain back-end efficiencies, and support digital initiatives. By doing so, successful CIOs will set themselves up for success in 2018 and beyond.
More on this can be found at: https://novarica.com/brokercarrier-technology-trends-and-challenges/.