Technology That Could Revolutionize the Insurance Industry

Image credit: BMW/autoblog.com

Image credit: BMW/autoblog.com

I downloaded a new app this weekend called TED.  Have you heard of it?  It’s the official app of the nonprofit TED: Ideas worth spreading. TED, which stands for Technology, Entertainment, Design, is described on Google Play as the app that “… presents talks from some of the world’s most fascinating people: education, radicals, tech geniuses, medical mavericks, business gurus, and music legends.  Find more than 1,500 TED Talk videos and audios (with more added each week) on the official TED app…”  It’s a great app if you have some extra time and enjoy hearing fascinating people talk! (you can also visit their website to hear the talks as well).

I watched several of the newest videos and enjoyed each of them.  The best, in my opinion, might have been Rodney Brooks (the MIT professor who founded iRobot), “Why we will rely on robots.”  It was fascinating. He shared that while people sometimes agonize about robots taking their jobs over the next few years, the focus should be on the development of the technology to help the world’s aging population. He re-introduced me to Amara’s law, which states:  “We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.”  I was excited!  I thought, “This is the best app ever!”

I was curious to see if there were any insurance related talks – business gurus or tech geniuses presenting a glimpse of how the insurance industry will be revolutionized.  My search netted two results and I watched both.  One was Richard Resnick introducing the genomic revolution; the other was Robin Chase who wanted to rent my car.  Though car sharing does have some impact on the auto insurance industry and the genomic revolution sounds amazing, neither talk was what I was after.

No one fascinating is talking about the insurance industry?  No ideas worth spreading about insurance?  So, I thought I’d share my own. Here are some technologies I find fascinating that may revolutionize the insurance industry:

  • Telematics – how you use your vehicle directly impacting the premium you’ll pay.
  • Autonomous vehicles – If you’re not driving, who is responsible for the vehicle?  No more collision insurance premiums?
  • Building products – products to better withstand wind, water, and hail damage.

Are these examples of overestimating the effect of a technology in the short run or underestimating the effect in the long run?

How do you think future technology will impact the insurance industry?

One Comment on “Technology That Could Revolutionize the Insurance Industry

  1. I am not sure how future technology will impact the insurance industry, but it is going through a sort of mini technological revolution currently. Insurance technologies that make functions like billing and claims more streamlined and efficient are already making waves. While some argue that certain insurance technology solutions like underwriting software will make an underwriter’s job redundant, others are of the opinion that they are designed to enhance productivity. I personally agree with the latter school of thought. With the software taking care of routine underwriting tasks and straightforward applications, underwriters are free to devote more time to complicated cases. Tech companies like MajescoMastek are doing a great job of delivering such high quality innovative solutions to carriers to help improve employee productivity and increase their bottomline.

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