Making Sense of the Insurance Industry's Resistance to Going Digital
The insurance industry is late to the game. Digital initiatives are now the dominant business paradigm. By today’s standards if you aren’t doing digital transformation, then you are near the bottom of the learning curve. That’s where you can find most insurance companies—and they are steadily falling further behind.
New technology recently entered the market that sped up the pace of digital transformation: from machine learning and sensors, to virtual reality, autonomous cars, big data analytics and digital collaboration tools. These innovations didn’t just change business; they change the nature of risk and liability.
Everyday activities such as driving all the way to complex activities such as supply chain logistics demand a nuanced approach to filing claims, assessing risk and liability, settling disputes, and pricing out policies based on real-time data and analysis. But that hasn’t really happened. Why haven’t insurance companies kept up?
Insurance Lives in the Past
There are a number of ways to explain why insurance companies are still largely operating