2020 Industry Trends: Innovation & Technology
As we get further into 2020, we’ve seen several technology and innovation trends emerge that provide opportunities for the insurance industry. By understanding the direction technology is moving, we can take advantage of the advancements to find better business solutions and meet more of our customers’ needs. Take a look at these three trends we see impacting insurance in 2020.
Access to Large Amounts of Data through Various Sources
New sources of information mean we need to make sense of the data surplus and navigate for insight. Drilling in on unique data elements — such as Yelp reviews, voice sentiment and Facebook posts — can aid companies in better risk selection and price segmentation. Companies that can figure out meaningful ways to use data sources will be winners.
Unlock Data’s Potential
Our Applications Development & Enterprise Architecture Director Dave Beving says, “data is like the oil in the ground. You need tools to mine it and make it combustible.” Tools like artificial intelligence, machine learning and the Internet of Things (IoT) afford the opportunity to breed new sensors and devices that can offer other services and provide protection beyond the policy. For example, Roost sensors have the capability to give real-time feedback about security and risks, such as notifying customers of unlocked doors and water leaks.
Need to Attract New Talent
While a generation of industry experts approaches retirement, only four percent of millennials are thinking about entering the insurance field. Deloitte notes that this upcoming “exodus is expected to result in the loss of a wealth of institutional knowledge and leave nearly 400,000 unfilled job openings by the end of 2020.” We are competing for this talent with several other industries, so raising awareness of the innovation opportunities available in insurance and the digital transformation happening in the field is key to attracting young talent, especially data lovers and data scientists.
© 2021 The GuideOne Center for Risk Management, LLC. All rights reserved. This material is for informational purposes only. It is not intended to give specific legal or risk management advice, nor are any suggested checklists or action plans intended to include or address all possible risk management exposures or solutions. You are encouraged to retain your own expert consultants and legal advisors in order to develop a risk management plan specific to your own activities.