With increasingly sophisticated technology, especially in the field of artificial intelligence, the rapid evolution of this industry will be driven by the adoption and integration of automation, deep learning, and external data ecosystems. Even though no one can predict exactly what insurance is like by 2030, insurance airlines can take a few steps now to prepare for technological change.
Smart in technology and trends related to AI (artificial intelligence)
Although the tectonic shift in this industry will focus on technology, addressing it is not the domain of the IT team. Instead, board members and customer experience teams must invest time and resources to build a deep understanding of the technology associated with this AI. Part of this effort will require scenario-driven scenarios to understand and highlight where and when disruptions might occur – and what they mean for certain lines of business.
For example, insurance companies are unlikely to gain much insight from limited scale IoT pilot projects in separate parts of the business. Instead, they must continue with the purpose and understanding of how their organizations can participate in the IoT ecosystem on a scale. Pilot projects and proof-of-concept (POC) must be designed to test not only how a technology works but also how successful a carrier can operate in certain roles in a data-based or IoT ecosystem.
Develop and begin the implementation of a coherent strategic plan
Building on insights from AI exploration, operators must decide how to use technology to support their business strategies. The long-term strategic plan of the senior leadership team will require a multi-year transformation that touches on operations, talent and technology.
Some airlines have begun to take innovative approaches such as starting their own venture capital businesses, acquiring promising insurance companies, and forging partnerships with leading academic institutions. Insurers must develop perspectives on the fields they want to invest in to meet or beat markets and what strategic approaches – for example, forming new entities or building internal strategic capabilities – are best suited for their organizations.
This plan should address the four dimensions involved in analytic large-scale initiatives – everything from data to people to culture (Figure 2). The plan must outline the AI-based pilot road map and POC and specify which parts of the organization will require investment in focused skills development or change management.
Most importantly, a detailed schedule of milestones and checkpoints is very important to enable organizations to determine, on a regular basis, how the plan must be modified to address any changes in the evolution of AI technology and significant changes or disruptions in the insurance industry.