Disruption in the insurance market is inevitable to a degree, but enhanced technological advancements can provide huge benefits to the current players within the insurance market, according to a report from the Australian and New Zealand Institute of Insurance and Finance.
“It has become increasingly obvious to us that technology will transform the insurance industry,” New Zealand Financial Innovation and Technology Association (FinTechNZ) Core Working Group member
Craig Kirk told the
ANZIIF.
According to Kirk, everyone likes to talk about the “D” word — disruption. “I think that we will see new entrants to the insurance market that will provide very different insurance solutions in a very different manner to how incumbents have traditionally transacted.”
In return, the insurance industry is expected to find creative ways to adapt, survive and co-habit with advancements such as machine learning, predictive analytics and blockchain technology, said Kirk.
“For example, predictive analytics enables us to make better underwriting decisions; chatbot innovations, such as Ambit’s conversational AI platform, enable us to more effectively and economically sell insurance,” he said. “Developments with the ‘internet of things’ enable the insurance industry to better monitor and price product and infrastructure risks and the advent of cloud-based claims management systems enables us to provide more transparent, efficient and cost-effective claims outcomes.”
According to the ANZIIF, Kirk aims to communicate this belief as part of a FinTechNZ panel discussion to be held at the Insurance Conference NZ in Auckland Sept. 7.
Instead of feeling threatened by insurtech, participants are expected to feel excited and energised by understanding the benefit that insurtech innovations can bring to the industry, Kirk told the ANZIIF.
Related stories:
NZ insurance sector’s fintech engagement lacking
NZ pilot insurtech sets sights on international growth
.jpg)
