In many ways the insurance industry has led a sheltered existence. Regulation and the need for scale have created entry barriers to the industry while the key role of intermediaries in customer relationships and customers’ inertia can also be seen as “protective” characteristics. The net result is that, aside from asset management, insurance companies have been slow in adopting new technology, especially of a customer-facing nature for fear of upsetting agent networks.
As these barriers weaken insurers are paying a lot more attention to new technologies. Today the industry is abuzz with technology jargon like AI, InsurTech and RPA, reflecting the significant momentum that technology-driven trends have developed.