PwC expert predicts change of insurance
Nick Spooner, a PricewarehouseCoopers (PwC) expert has claimed in a post on Digital Pulse that the insurance industry will be unrecognisable in the near future due to technological advances.
Nick Spooner, a PricewarehouseCoopers (PwC) expert has claimed in a post on Digital Pulse that the insurance industry will be unrecognisable in the near future due to technological advances.
Spooner says in his article that the rise of peer-to-peer cover, on-demand insurance, artificial intelligence and blockchain will significantly alter the way that consumers receive their insurance.
“For hundreds of years, the insurance industry has been inert. Its processes and products worked; it simply didn't need to change. Insurtech is changing that,” Spooner states. “As fintech is doing to banking, insurtech, the digitisation of insurance, is transforming the insurance industry.”
He points towards the US$1.7 billion of insurtech deals that were completed in 2016 alone as a signifier for how rapidly this area of the industry was advancing. He also points toward start-ups that are ‘changing the game’, meaning that ‘what we think of as insurance today will soon be unrecognisable’.
He added: “The world of insurtech is far larger than the examples mentioned here. Cloud, drones, chatbots and a host of other technologies are allowing start-ups to think outside the box and driving incumbent insurers to reassess their business models. How insurers will fair in this new world is a whole other question.”