Pandemic Spurs Technology Growth in Insurance Industry
Edin Imsirovic, associate director at AM Best, says market pressure from the pandemic advanced innovation by a couple of years or so. Insurers increasingly used their catastrophe models, drones, and mobile apps during the COVID-19 pandemic, and insurers anticipate growth in the technology even after the health crisis passes.
Serge Gagarin, manager of segment marketing at AIR Worldwide, says that “large-scale systems integration projects,” big projects insurers might be undertaking, are developing independently of the pandemic. Insurers have adopted catastrophe modeling for predicting the severity of events and for claims handling. The California Department of Insurance is considering how catastrophe models predict wildfire risk and whether they can be used in rate-making, the subject of a virtual public hearing last month.
“Technology growth hasn’t always been a priority in the insurance industry. We’re a slow industry to adopt things sometimes, I dare say,” said Don Griffin, vice president of personal lines for the American Property Casualty Insurance Association.