4 insurance tech themes driving innovation amid uncertainty

Insurers are inundated with data, but they realize that simply storing data and not doing anything with it isn’t valuable for the business. The true value comes from utilizing the data to make informed business decisions. This is where machine learning (ML) and artificial intelligence (AI) play a critical role. (Credit: Blue Planet Studio/stock.adobe.com)

Uncertainty and risk are two factors insurance professionals know well. And while they are built into the folds of the industry, from a business perspective the insurance sector continues to face pressures of increasing operational costs, escalating regulatory demands and increasing competition. For a traditionally risk-averse industry, the disruption that has happened in the last 10 years has turned operations upside down and caused many insurers to reassess business approaches to ensure they are meeting the evolving needs of their customers.

While digitalization and digital transformation have become a commonplace trend, it remains a priority theme within the insurance industry, with more insurers moving into more advanced steps within transformation journeys. With new technology and innovation driving continuous change, insurance companies that want to remain competitive during uncertain times will need to embrace change head-on and take hold of the following four themes on their path to innovation.