The “inevitable” change emerging from the influx of technology making its way into the insurance industry should be greeted with optimism as businesses look to adapt to client changes, an expert has said.
Jarrod O’Connor, senior underwriter and team leader– Southern Region at Accident and Health International, said that technology remains the industry’s biggest challenge but also its greatest opportunity.
“The rate of increase in technology in the world at the moment is relentless and for an industry that has so many proud traditions, change of such a distinct and express nature can be met with negativity, scepticism and justified concerns,” O’Connor told
Insurance Business. “However, it should also be met with optimism and excitement.”
O’Connor stressed that, with clients demanding more streamlined access to products and services, the need for both brokers and insurers to adapt their offerings “is more evident than ever before” as firms grapple to remain competitive.
“There’s a feeling of unrest from large broking houses and insurers as they battle to update their, in some instances archaic, operating systems,” O’Connor continued. “Especially when you consider the rate with which agencies and smaller broking groups are coming into the market with smaller overheads and more flexibility to adopt evolving technology making its way into the industry.”
O’Connor noted that opportunities exist to refine some of the more labour-intensive processes within the industry, as automation streamlines the industry and improvements are made to efficiency, profitability and staffing.
“This coupled with the greater data collection and risk data analysis that advanced technology provides - the future is certainly bright for those in the industry that can best harness the inevitable use of technology throughout all parts of their organisation,” O’Connor continued.
For brokers and insurers looking to succeed within this new reality, O’Connor said that time is of the essence.
“The ones that come out on top will be those that have adaptable business models, are flexible in their thinking and approach the influx of technology with an open mind,” he said. “It is true in so many instances but certainly applies to our industry at the moment. If you stand still, you’re going backwards.”
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