large commercial? Perhaps, but not in the short term. There is a lot of
ground to cover with the smaller products. That’s where traditional
carriers will see more competition from the outside.
ITA: So much has changed in insurance and
technology over the last few years, what is your
view on the insurance technology market over
the next three years as we move toward 2020?
RYU: I think we’re all in the infancy of how to apply predictive
analytics in an actionable way. There’s a whole world of digital engagement, which is a vast frontier. There are all kinds of
digitally native mobile offerings that will change the character
of insurance. I think what it means to service a policyholder will
change a lot. Things like chat bots can do some amazing things. It
won’t be long before certain aspect in the insurance life cycle will
be covered by AI-driven voice interactions. You have companies
that say conventional retrospective actuarial rating is going to be
displaced with machine learning, AI, and big data approaches
to underwriting. How quickly that will happen, I’m not sure,
but I think it’ pretty certain some form of that will happen. It’s a
dynamic time in insurance technology and I think Guidewire is
situated to advance those technologies to assist customers.
JACKOWSKI: Technology has played a big role in driving compelling changes and I think we are going to see some new entrants
in technology, more in the dimensions around distribution—digital
exchange models and aggregators—to challenge the conventional
norms. You will see a new focus on managing risk using machine
learning and artificial intelligence and applying new approaches,
which have been effective outside the insurance industry, to our
marketplace—such as retail. We’re seeing carriers that are using
historical actuarial science, augmented with machine learning and
some new techniques. It will be important for carriers to figure out
how to embed these technologies into their operating model.
Most importantly, we think carriers who can react with
more speed and agility around their product portfolio and
distribution channels will be the big winners. I see a very rewarding future for those insurers who embrace technology and
the cloud to will help them move faster—whether introducing
new products, streamlining business operations or servicing
their customers. By enabling carriers to facilitate a test and learn
environment, react more quickly to the marketplace, figure out
how to automate their operations, or launch products more
quickly, our technology is helping them achieve this speed.
AL-DOR: The next three years will be about digital, of course. The
data is available, the devices are everywhere—now it’s finally time to
drive the digital vision. Core systems must be flexible to absorb data
from all sorts of sources and deliver value from the data. Value will be
both for the carrier—by optimizing products and pricing, and for the
end consumer—having the flexibility and user experience that makes
insurance more friendly and accessible. It is about those killer-apps
that will win this market. And just like the retail revolution—when
they started sending you coupons that fit your buying behavior 20
years ago, now it’s about offering you the insurance products that best
fit your lifestyle, through an amazing user experience.
With the massive amounts of available data, an insurance
company can expand its offering to not only just cover for risk,
but also engage in risk prevention, which will be much more
valued by the customers. This is where the insurance companies will have the opportunity to build rewarding relationships
with their customers. This can be a real turning point for the
industry, where customers will start to actually like the insurance companies and see value day-to-day, and not just when
an event happens. Data is core, but customers are the real true
asset, without which an insurance company cannot exist.
To better service customers, carriers will also start to leverage
more automated, AI-enabled processes, where the majority of decisions will be taken by the machine, allowing the staff to handle
exceptions faster and better. Machine-supported processes will be
a key factor in the new insurance customer journey.
GLAZER: Data and analytics are going to become more important to carriers. Same with the customer experience and the “
digital revolution” hitting the industry and enabling carriers to sell
insurance in new and innovative ways. Today there is a lot of talk,
but there are not a lot of vendors who can provide a significant
amount of value to carrier when it comes to data and analytics.
Everything from making better, more informed underwriting
decisions to managing claims to understanding a new book of
business or how to market to consumers—is all being driven by
data and analytics. It’s still in its early days but you are going to see
it accelerate. We also are seeing explosive growth in the way new
data sources from the Internet of Things are being consumed by
insurers and how they are using it to better serve their customers.
I also see how important it is for our customers to be able to offer
the best experience and easiest workflow for their own customers.
This will help push out distribution and make it more convenient
for people to do business with them, hopefully letting them sell
more product. Our mission is to be a partner for them in this
MEHTA: We see a clear trend that within three years down the line
the technology market will look different than it does today. There
will be smaller projects as opposed to modernization projects that
costs millions of dollars, take many years, and have risk associated
with them. The model will change in favor of fast, nimble, flexible,
and pay-as-you-go model. We expect a cloud-based insurance business platform that is pre-integrated with partner capabilities and data
sources, will give value quickly and have the flexibility to become a
norm in near future. ITA