Press Release - SEPTEMBER 25, 2018
Best’s Special Report: Newer Technologies Finding Differing Levels of Acceptance in Insurance Industry, A.M. Best Survey Finds
FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 25, 2018
The survey results are part of an extensive Best’s Special Report on innovation, titled “Insurers Agree Innovation Is Critical for Future Success,” which incorporated responses from more than 450 insurers. Nearly nine out of 10 survey respondents said that innovation was moderately to extremely critical to their organization’s success.
The use of machine learning and artificial intelligence techniques in predictive modeling for better risk selection, pricing, and claims are being incorporated at different rates across the property/casualty, life and health segments. When it comes to actual implementation, 61% have invested or are planning to invest in cloud computing, which was a major factor in the increased growth and importance of big data and continues to gain momentum ever since Amazon introduced its Amazon Web Services in 2006, while 13% have made or are planning to make investments in blockchain.
“Insurance companies recognize that their expertise lies not in technology, but in insurance,” said Edin Imsirovic, A.M. Best senior financial analyst. “However, they also realize the power of technology to transform the insurance industry on a large scale, and have thus partnered with or invested in insurtech companies that are more attuned to the development and monetization of new ideas.”
Survey responses regarding new technologies include the following:
Other report sections focus on overall survey results on companies’ innovation efforts and plans; how respondents from each of the primary industry sector, as well as emerging markets, view innovation; how innovation may impact insurance regulation; and answers to frequently asked questions regarding A.M. Best’s innovation initiative. As a next step, A.M. Best will be developing a new criteria procedure focused on evaluating innovation and also will be reviewing where a more explicit assessment of innovation fits into Best’s Credit Rating Methodology.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=278448 .
A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.