Page 42 - Insurance Times October 2020

Figure 1: The Drivers of Change
Evolving Risk: The growth of sharing and access
Demographic changes: With the boomer generation economy is changing the concept of insurable interest.
retiring in troves, insurers are facing the risk of a Consequently, the dimensions of liability risk are seen
shortage of talent. Due to the challenges associated to expanding. The technological confluence of physical,
recruiting and managing millennials and digital natives, digital, and biological spaces is affecting the equation
insurers are now compelled to make the work of risk by increasing the surface of risk and birthing
environment attractive both in terms of work-culture highly complex cyber risks and new silent risks.
and technology adoption. This is in turn driving
companies towards reskilling older employees. In addition to the above drivers of change, force multipliers
such as the recent outbreak of COVID-19,exacerbated
Emergent technologies of convenience: The advent climate change, and simmering geopolitical tensions are
of the fourth industrial revolution (4IR) pioneered by disrupting the global risk dynamics and turning the drivers
technologies such as smartphones, big data, 4G,and of change more potential. For instance, the past few
cloud is redefining the contours of the art of possible in months of fighting COVID-19threw a lot of operational
connectivity, access, demand, and usage. Further, the challenges and in turn catapulted the digital drive of insurers
extensive progress in various streams of artificial forward by a minimum of five years.
intelligence is providing organizations with new
capabilities that were not available earlier. Due to their The Unravelling of Future Claims
proliferation and ubiquity, what initially started as
technologies of convenience are now growing to Organizations
become technologies of necessity. These change drivers and force multipliers are forcing
Customer Demand: Though the demand of customers insurers to design an overarching future-proof claims
for better claim experience is a primitive and long-held application landscape that is intelligent, agile, and scalable.
expectation, it is now turning intense. This change is The future claims systems will be enabled by several of the
fueled by two factors: experience-focused millennials emergent technologies. To support the changing business
becoming the most influential demographic cohort and models, risk landscape and technologies, the claims
the explosion in the technologies of convenience with organizations are reinventing their operating models and
which personalized service is much achievable. the supporting application landscape.
The Insurance Times, October 2020