Author Credits: This blog is a summary of “Four key themes from InsureTech Connect 2023” by Corey Bourbonais, Tanguy Catlin, Deniz Cultu, Doug McElhaney, and Grier Tumas Dienstag.
Introduction: The InsureTech Connect (ITC) 2023 event in Las Vegas was a hub of innovation, gathering over 9,000 participants from the insurance technology spectrum. From insightful expert panels to cutting-edge technology booths, four key themes emerged, shaping the future of insurance.
1. Rising Enthusiasm for Generative AI: The insurance sector is abuzz with the potential of Generative AI (gen AI). This transformative tech is being eyed for integration into insurance offerings, promising to revolutionize client interactions and financial results. While still in nascent stages, its application ranges from fraud detection to employee onboarding and data analysis through intuitive interfaces. The challenge lies in training staff and deciding between in-house development and external tech vendor solutions.
2. Renewed Focus on Profitability: A shift from growth-centric to profitability-focused strategies was evident. Insurtechs are now collaborating more with traditional carriers, driven by profitability challenges amid economic pressures and rising costs due to factors like social inflation and catastrophic events. Efforts are concentrated on managing claims costs, enhancing underwriting, and improving pricing accuracy.
3. Evolving Coverage and Emerging Risks: The complexity of risks is escalating due to technological advances and global macro developments. Key discussions centered around cyber insurance growth, coverage for gen AI-related risks, and changes in reinsurance, particularly in response to property loss frequency and social inflation.
4. Reducing Technology Debt: There’s a renewed emphasis on bolstering foundational data and technology infrastructure. Reducing technology debt has become crucial for adopting advanced technology like gen AI. This necessitates modernizing legacy systems and enhancing cloud capabilities, blurring the lines between business and technology expertise.
Conclusion: InsureTech Connect 2023 highlighted the dynamic transformation in the insurance value chain, driven by data and technological advancements like gen AI. The focus is shifting towards insurtech that supports the industry ecosystem, signaling an exciting year ahead in 2024 for the insurance sector.