The digital revolution, the upheaval of the insurance business

Magazine Issue:

Insurtech, the insurance of the future [3]

Magazine date:

May 2018

The insurance industry is poised to undergo a profound mutation in the near future. Digital innovation has already started to turn the insurers’ profession upside down, with the latter cornered and pushed to rethink their labor chain.

Traditional tasks such as underwriting, risk management, billing, compensation will gradually be replaced by digital tools that are supposed to provide more speed and accuracy.

Apart from the overhaul of the insurance business, the digital revolution will test insurers to their limits, with driverless cars [4] cutting down motor premiums considerably. Moreover, smart cars are set to reduce by 90% the number of road crashes in the United States. Underwriting a motor policy will no longer be necessary or, in the best of cases, car makers will provide it for free.

Indeed, the States of Connecticut and Massachusetts, the first to make motor insurance compulsory in 1925, are most likely the first to lift this obligation, Digital Insurance Trends, a group of professionals, keen on innovation in the insurance sector, has estimated.