Insurers are no stranger to large-scale technology changes, but 2020 was unique in the magnitude of change. Incumbent carriers have spent much of 2020 year moving complex IT infrastructures into the cloud and instituting new remote risk assessment technologies, in order to continue serving their customers safely and efficiently.PropertyTechnology
While individual lines of P&C insurance have experienced differential impact from COVID, carriers generally appear to be coming through the pandemic with their financial health intact, as well as an enhanced appetite for digitization.
Personal Auto has become more profitable due to less overall miles driven, Business Owners Policies (BOP) are navigating potential litigation regarding business interruption, whereas homeowners insurance has seen a relatively muted impact.
Overall, carriers have been compelled to accelerate certain digitization initiatives, and have managed them relatively effectively, resulting in an accelerated motivation and increased confidence in their need and desire to adopt emerging digitization technologies.
As carriers rapidly increase their comfort level with digitization, what emerges is an increasingly mounting need to sift the mounting piles of available data for actionable insights, in other words: finding more needles, not creating more haystacks.