Insurance risk managers must embrace technology disruption

The accessibility of sophisticated artificial intelligence (AI) and machine learning (ML) algorithms, enabled by the high-performance capabilities of cloud-based data centres, mean insurers can more readily embrace a culture of innovation when it comes to their traditional approaches to business processes. Of course, the rising number of insurtechs, and evolving customer demands, have contributed to the creation of a disruptive environment that can capitalise on digitally driven solutions. Whether through partnering with insurtechs or looking at more effective ways of modernising their existing processes and systems, insurers are well-positioned to capitalise on global changes in the industry that have been accelerated with the onset of the COVID-19 pandemic. AI and ML introduce a level of automation in data analysis and the decision process that was not possible before. It is especially in underwriting, claim decisioning and product development that these technologies prove to be invaluable.