While budgets and staff are shrinking and operational demands are growing for business continuity managers, BCM across every industry is being asked to do more with less, leaving a possibility of program gaps. At the same time, businesses are being asked to make changes in light of the digital transformation. This is no different for insurers and risk managers, as the once tech-adverse industry is striving to adapt to change, while maintaining organizational resilience, using technology to increase efficiency. The industry has dubbed this innovative push as: “InsurTech.”
Reluctance to change is a normal feeling in industries that are shaped by structure, especially when adapting to new technology. One readjustment means compliance checks, security reviews and miles of red tape to implement a new feature. Each attempt to become agile is met with resistance because industries themselves are resistant to change, thus creating a problem for BCM in risk management and insurance– “How do I adapt while maintaining business continuity planning and management?”
To answer this question innovators within the industry have shifted from the disruptor mindset and have started to adopt the same tools that the change-resistant market has avoided for so long. “InsurTech,” or Insurance Technology, is the use of technology innovation to maximize savings and efficiency while adapting current insurance industry models. This has let risk managers and insurance managers meet fiscal demands while BCMs are left to maintain resilience.
This is done through the implementation of BC strategies designed to secure major technological advances that InsurTech has brought about in an attempt to modernize the insurance industry. Top tech trends include:
- Internet of Things (IOT) - IOT is allowing companies to gain customer insights through the use of wearables, home devices and other internet-connected devices to in turn offer advanced personalization to their services.
- Blockchain – Blockchain is a highly secure, centralized way to track transactions, and essentially acts as a ledger of record for transactions. This aids insurers in automating administrative policy actions.
- Artificial Intelligence (AI) - AI is the catch-all for programs and algorithms that can perform and adapt to meet real-time tasks and provide solutions. Right now 80% of executives believe that AI will revolutionize the way companies will proceed to acquire information from their customers.
Successful risk management and insurance companies understand that they still need to grow even though interest rates and economic factors have forced them to economize budgets and offerings. They are doing this through technology, innovation and opportunity. But, at the same time they need to invest time and resources into a comprehensive business continuity program that protects them from the unknown dangers and threats brought on by InsurTech advancements.
To see an in-depth breakdown of how the risk management and insurance industry is meeting business continuity challenges presented by InsurTech innovations, read our whitepaper “Business Continuity Management in the Age of Insurance Innovation” to learn more.
Written by Assurance Software
Assurance Software takes your company’s enterprise-wide business continuity and resiliency program to the next level. AssuranceCM and AssuranceNM work together to allow your business to manage recovery seamlessly – protecting every aspect of your business.