“It is not only a question [of] competitive evolution and competitive advantage, but it’s [also about] absolute survival,’ says chief executive
The use of technology in the insurance industry is essential for firms’ “survival”, Verisk chief executive Lee Shavel has warned.
Shavel was speaking during his keynote speech at the Verisk conference last week (5 September 2024) and warned firms that they are at risk if they do not adopt new technology.
His comments come after Accord’s Insurance 2040 Study, published in February 2023, revealed approximately 50% of survey participants anticipated that their greatest long-term source of competitive advantage will be the way they leverage technological capabilities.
Shavel also noted that one of Accord’s studies ”demonstrated that insurance companies that have adopted new technology, not only do better, but the firms that did not adopt new technologies no longer exist”.
He went onto explain: “It is not only a question [of] competitive evolution and competitive advantage, but it’s [also about] absolute survival.
“If firms are not able to see risk in the most modern and current way, then those firms are at risk of misplacing or understanding that risk.”
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In turn, Shavel said that Verisk was “investing in the analytics that we can provide to the industry”.
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And he added his firm had “been putting a lot of effort, time and money into new applications”.
An example of this is the investment the business has put into its Whitespace platform.
Back in May 2024, it announced a new workflow automation proposition that allows underwriters to automate follow lines at the quote or firm order stage.
Shavel said: “[This is one example] of what we’re doing within data and technology.
“It’s reflective of a core model that has always been focused on investing in data and technology, combined with our domain expertise in the insurance industry, to deliver value to the entire sector.
“We can take an investment in a data set, apply it in a new analytic approach and create a network platform that improves efficiency and scales across the entire industry.”
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