While the new disruptive InsurTech companies were initially written off by carriers, citing woefully unprofitable combined ratios, they are trending positively and could soon see underwriting profits. COVID-19 is pushing companies to lean increasingly on technology, and incumbents are utilizing advanced data, analytics and technology capabilities in software and platform-as-a-service models to accelerate their own business and technology roadmaps.
Prior to COVID-19 unleashing health, political and economic havoc across the world, discussions on the future of work had emphasized a global workforce on the brink of an existential crisis arising from the infinite, yet-to-be-realized potential of artificial intelligence and machine learning.
Indeed, the digital revolution has demonstrated that AI and machine learning technologies have moved far beyond delivering low-wage or blue-collar jobs, according to Disha Kaushal, Regional Industry Leader, Asia Pacific at Guy Carpenter-affiliate Mercer. These sophisticated technologies now claim to have the capabilities to fundamentally redefine and potentially supplant highly skilled knowledge worker roles, such as surgeons, legal experts, diagnostic professionals and risk analysts, to name a few.
However, the COVID-19 health crisis has exposed some of the fault lines in this argument: If robots or AI could entirely replace humans in these roles, these services would not be on the edge of breaking down to the extent to which they are now. The pandemic has shown us that humans continue to be at the forefront of the fourth industrial revolution and all subsequent revolutions in the world of work.
Guy Carpenter’s GC Genesis offers subscribing insurers two complementary offerings: the Insurtech Alliance (ITA) and insights into emerging risk. The focus of the ITA is to help insurers improve business performance through the innovative use of data, analytics and technology. The ITA sponsors in-depth research of emerging digital technologies, a structured review of targeted RiskTech companies and access to a curated data base of RiskTech companies. The focus on emerging risk provides participating insurers with access to targeted emerging risk research that helps insurers explore and manage both man-made and natural emerging risk. GC Genesis sponsors quarterly members’ only meetings for insurers to learn about emerging risks from scientists and experts on technology. These meetings also showcase vendors who are introducing cutting edge products.