The skyrocketing rate at which technology continues to make innovative advances is alarming. Let us take a look at Artificial Intelligence (AI), which has evolved profusely over the last decade. This is evidenced by the different forms of AI present in the market today, be it computer vision, satellite imagery, or imagery cognition. It doesn’t stop at that; there are innovations springing up from each of these technologies as well. These technologies are due to accept back process operations, which would be an effective advance in the industry. Taking a dive into what satellite imagery is capable of; the provision of additional images does promote a more dynamic kind of insurance—while extending up-to-date information in terms of the risk factor. Yet another growing area is conversational AI, whether it is speech or language recognition. This essentially involves the conversion of verbal commands into structural programming languages. Chatbot is one such example, which has been further modified to provide a chat service platform (like Cortana or Siri).
Technology has managed to touch every possible field in the industry today, including insurance. Consider sensors, for instance; we are now able to receive immediate information about different parameters. In order to aid private passenger auto insurance, Rockingham introduced a program known as Smart Wheel Drive (SWD). This involves installing a device into a car, which can collect sensitive data on driver behavior. This is used to create a more personalized version of an insurance plan for each car owner, based on their individual driving habits. It can also be manipulated to reconstruct accidents, which is similar to what black boxes do for aircrafts.
"Transition to autonomous vehicles would potentially include a conversion from personal auto insurance to product liability insurance"
Note that as we proceed further into the technology-driven industry, the trend of eliminating human involvement continues, which is changing what insurance products used to be. An autonomous vehicle with no driver would potentially include a conversion from personal order insurance to product liability insurance.
There is also an undying quench for insurance in almost any field. The popularity of drones has been rising constantly; the possibility that an amateur pilot might crash and cause potential damage calls for drone insurance, which is supported by companies like Flock and Coverdrone. The existence of real-time control ensures that everything is connected virtually.
One of the most significant challenges in the industry today is cybersecurity, and our major role is to be concerned enough about it. All technological innovations come with a price, so staying ahead of the game is crucial. Interconnectivity continues to grow while opening doors to newer challenges for protecting the privacy of customers and systems. Another pitfall is that the world continues to take on a fast-moving pace; coming up with newer technology is restricted to shorter timeframes. Implementation is not the only concern, but also ensuring that the implementation is done speedily.
Overcoming these challenges has no single solution as companies vary, whether in size, organizational structure, or economic stability. Smaller companies may not be financially able to implement a technology that a bigger company does easily. As a collaborative team, however, what we can do is watch out for the general trends that come with these technologies. Our roles as integral parts of the organization include serving consumers, which should be our foremost priority. Apart from this, CIOs must also ensure that the internal stakeholders are armed with the required tools to make intelligent decisions and advance into innovative trends.