According to a recent study released by Insurance Nexus in the lead up to their 2020 Insurance AI & Innovative Tech Summit, which is being Held virtually and chaired by Insurance Evolution Partners founder Bryan Falchuk, the message is clear – more than half of carriers are investing in transformative technology in the near-term.
According to the report, more than two-thirds of carriers reported they are investing in or will invest in Predictive Analytics and Artificial Intelligence (AI) within the next two years. Looking at more advanced solutions like Machine Learning (or “ML”), half of respondents reported having investment underway or planned.
While these technologies have been discussed for years, to have such a large proportion of carriers note that they are part of their short-term investment horizon rather than their five-year-or-longer strategy is what stands out.
The message is clear. While we as an industry have been talking about these technologies for years, there has always been a sense that they’re far out in the future in terms of really being used, which means many of us felt comfortable remaining on the sidelines.
The sidelines are no longer a comfortable place to sit.
While investment in next-generation technologies in the near-term is an imperative, what is no longer true is that the investment must be large.
According to the 300 executives surveyed, 86% claimed their investments were under $5 million. When you put that in the context of any other transformational technology the industry tends to invest in like new core systems, this is both encouraging and eye-opening.
You can invest a with nominal portion of your IT or Innovation budget in something that 40% of respondents believe will have positive returns within two years. That is an incredibly short pay-back window for any technology investment, let alone one that can be had for low-seven or even five or six figure amounts.
As Falchuk shared at another industry event recently, the current situation we all face with COVID-19 may feel like a time to hit pause on change and focus purely on keeping the lights on. As this survey was conducted after the outbreak started, our advice that you cannot sit back and will be marginalized if you do is only reinforced.
The report is free, and sheds light on the specific technologies that rise to the top of the list of where carriers are putting their money. The AI & Innovative Tech Summit is also free, having moved to a virtual event, so the first investment you should consider making is your time so you can take in the insights from the various speakers and thought leaders from across leading carriers, technology providers and more.
The Summit runs May 27th and 28th, and there is still time to register to be sure you hear how these investments are being put to work to impact underwriting speed and accuracy, claims experience and results, service delivery, customer experience, product development, risk modeling and more.
The carriers and partners participating are impressive in their leadership not just in the industry but on moving the industry forward.
Register today at https://bit.ly/363UAfc?.
This post is inspired by the upcoming book, The Future of Insurance: from Disruption to Evolution, coming out June 24th, 2020 at Connected Claims USA, written by Bryan Falchuk and published by The Insurance Nerds.
Pre-order your copy today at future-of-insurance.com.