Opportunities for innovation still to be harnessed

5 September 2022

The insurance industry is yet to capitalise on innovation opportunities offered by technology, while the sector’s complexities also present hurdles to developing new platforms and systems, the Australasian Professional Indemnity Group (APIG) conference has heard.

WTW Professional and Financial Lines Leader Jill Stewart says there is potential to use technology to rethink traditional approaches to offering cover and engaging with insureds, and to use the data that is collected more effectively.

“Technology is so important and impacts all businesses but I think as an industry, we have not used it particularly well,” she told a panel discussion. “We are replicating manual systems rather than thinking really afresh.”

ProRisk Executive Director Hamish McDonald Nye says the industry and its products are complex, and those considering major technology projects need to be ready for a considerable commitment, with solutions not readily available “off the shelf”.

“It is not for the faint hearted, and what we tried to do is make it part of our value proposition,” he told the conference.

The underwriting agency, which focuses on the SME sector, developed the proprietary ProBind underwriting platform as part of its technology development. The project included the creation of dashboards to better understand data available.

Mr McDonald Nye says once a technology solution is built, it doesn’t operate in isolation, and must align with other areas of the business, whether it’s claims, marketing, finance or the way in which personnel engage with the system.

“It’s a bit like a Rubik’s cube,” he said. “You think you’ve got one side of the Rubik’s cube sorted, but you have still got to line up everything else.”