The future is anyone's guess but if you want to brace yourself for technology-related subrogation complexities on the horizon, then you should listen to Guy Fraker, director of business trends and foresight at State Farm Mutual Insurance Co., as many attendees did Monday at the annual NASP conference.
At the management-track session, "The Future of Subrogation," Fraker presented attendees with a muddled reality for which there are currently no easy answers. The new normal is that rising technologies that affect insurance are hitting the consumer market space at a rate that is vastly ahead of the policy procedures of most insurers. As a result, the lines of culpability are becoming increasing gray. In addition, many emerging technologies haven't been adequately tested, and questions remain about the effectiveness of certain developments made through alliances and joint ventures.
"We must recognize that the exponential growth in technology capability is matched with an equally dramatically collapse in the cost per unit for technology," Fraker explained. "Those two forces essentially combine with a demographic profile in the U.S. that we have never experienced as a country." That different demographic equates to a surge in tech adoption rates.
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