Insurtech investment has been directed at the wrong places and instead of start-ups undermining established insurers, legacy companies are poised to exploit new technology and transform their businesses. Fourthly, much of what we read about in the media in terms of the incubator/venture activities of the major players should be seen for what it is — noise that more than likely is designed to conceal their real focus: investing in machine learning and advanced analytics that promises to utterly transform their ability to accurately price and distribute risk. The first wave is likely to be in health care, where insurers will use big data analytics to improve care for patients by identifying patterns that can help them tailor care. So far money has been sunk into streamlining processes and improving customer experiences, which won't lead to change, Twining wrote. Developing and deploying artificial intelligence and improving data extraction will be key to making that transformation, he concluded.
Insurtech investment has been directed at the wrong places and instead of start-ups undermining established insurers, legacy companies are poised to exploit new technology and transform their businesses. The first wave is likely to be in health care, where insurers will use big data analytics to improve care for patients by identifying patterns that can help them tailor care. So far money has been sunk into streamlining processes and improving customer experiences, which won't lead to change, Twining wrote. Developing and deploying artificial intelligence and improving data extraction will be key to making that transformation, he concluded.