Insurance, The Next Tech Disruption
After years of disruption in banking and payments, tech rebels are setting their sites on their next financial target – insurance. According to SVIA, this is a $5T prize. Several trends are swarming together to disrupt insurance: new business models, shared economy, Internet of Things (IoT) to name a few.
Applications of Digital Technologies in Insurance, source: Deloitte
IoT Introduces New Insurance Risks
If two self-driving cars crash into each other, where does the liability fall? IoT and connected everything is creating new opportunities but also introducing new risks. Besides increased cybersecurity risk that comes with all things digital, liability and other risks are becoming more dynamic and complex. As a result, insurers need new models and services to mitigate these risks.
New Risks Require New Tools
To compete in the new insurance economy, insurance IT, business analysts and data scientists will ALL need to rethink the core tools they use to discover, test AND rapidly deploy their business models. Not only will how decisions are made matter, but how FAST. Nimble discovery, testing and deployment are essential to compete in the battle that is about to engulf the insurance industry. Modern SaaS, analytics and decision rules engines like Sparkling Logic’s SMARTS™ allow insurance players to quickly discovery and modify business and risk logic. 20-year-old tools simply will not do. Without the latest tools and platforms, insurance carriers will find it difficult to defend themselves against modern fraud, advanced risk, and emerging insurance business models.