2. He added that by the
Time the 21st century ends,
the progress would feel like 20,000
years’ worth of transition instead of 100.
Back in 2001, famed technologist and futurist
Ray Kurzweil boldly proclaimed that
the human rate of progress
was doubling.
3. At the time, Kurzweil's statement
sounded a bit dubious.
But with how rapidly technology has
transformed over the last two decades,
it now seems that the world's ability to
change quickly was drastically
underestimated.
4. Changes that once took an entire
generation for people to adapt to now
take 10 years. The possibilities of this
rapidly changing landscape are endless
and so, of course, is the risk that
comes with it.
The fact is that we live in an age
defined by acceleration, and this
incredible pace of change has
exceeded many industries’ capacity to
handle it.
5. The Far Reaches of
Risk
It can simultaneously create a greater level of safety for the
status quo and change the very nature of risk, forcing
insurers to build new coverage solutions to address
previously unforeseen concerns.
It should come as no surprise that as technology rapidly
transforms, risk shifts along with it. Advancement is a double-
edged sword.
6. For instance, autonomous vehicles might
be safer drivers than humans, but they’re
also vulnerable to cyberattacks and
malware.
In many cases, driverless cars (and rapidly
changing tech like them) blur the lines of
where risk even falls.
For proof, just take a look at the sharing
economy.
7. It's less than a decade old, yet it’s raised
major questions in terms of how coverage
works.
If, for example, you drive for Uber or Lyft, is
your car classified as a work vehicle or a
personal one? And does the coverage shift
throughout the day as drivers turn their ride-
sharing service on and off?
Insurance companies have to find answers
for these types of problems on a daily basis.
8. It’s an understandably complex and — for
many insurance leaders — intimidating
concept.
However, while progress may be rapid,
it’s not entirely unpredictable.
For insurers, the future has the potential
to be bright for those who remain
engaged with the changing landscape of
risk.
Here's what those leaders can expect:
9. Humans will gain a
deeper understanding
of risk.
While technology’s race toward the future
provides ample opportunity for confusion,
it also provides the tools to parse through
that confusion and come to a better
understanding of risk.
Telematics, machine learning, data
analytics, and more all give insurers
much greater insight into how risk
touches every aspect of life.
1
10. Commercial auto insurers are dipping their
toes into telematics to explore how they can
be applied to evaluate individual driving
behaviors.
Companies can examine individual driving
habits to see how those routines inform the
kinds of services and discounts they can
offer customers. Instances like these are
only going to become more common.
This type of granular data sharing will have
a direct impact on how coverage is
constructed and provided in the future.
11. The way humans and
technology relate to
risk will change.
As automation continues to be integrated into
daily life, coverage will have to properly
account for and balance the effect computers
and humans each have on rates.
2
12. Amazon has more than 100,000 automated
and robotic systems integrated into its
operations working with human employees to
maintain efficiency.
The online retailer has almost certainly had to
consider how to provide coverage to cover its
employees while they work in tandem with
heavy machinery, something companies in
similar situations will also have to consider.
Regulation for this, as you can imagine, is still
being crafted. Insurers will need to make sure
they continue to stay up-to-date on how and
when machines can take over from humans
and how that will affect risk.
13. 3
Customer service will
look a little different.
Thanks to the Internet of Things, insurers
will be able to learn about incidents in real
time and process claims before a
policyholder even gets involved.
These instantaneous notifications are
clearly useful for insurance companies, but,
used correctly, they can also be a major
selling point for consumers.
14. Machine learning could have a similar impact on
customer service. It can be used to pinpoint a
highly customized plan for every individual
without the customer having to do most of the
groundwork.
This age of acceleration is intimidating, and it
certainly shows no signs of slowing down.
15. Leadership, however, should look at all this
innovation as an opportunity, not a threat. Insurers
can leverage tech to improve the customer
experience from quote to claim, and as technology
advances, so will the tools that help insurers
understand risk.
There’s no denying that infrastructure,
demographics, and risk are all changing at
breakneck speeds.
To keep up, insurers must not just follow change —
they need to grab it by its horns and embrace the
new before it becomes old hat.
16. www.valen.com
Are you in need of more guidance on how to prepare for the changing
landscape of risk?
Download Valen Analytics' "2018 Outlook Report: An Industry Divide"
for insights on how to adapt your approach.
