Insurance is on the verge of a massive shift driven by new technology — and is set to look completely different by 2030.
Insurance has been around for thousands of years — methods for mitigating risk were practiced by Chinese and Babylonian traders as long ago as 3000 BC — but never before has technology demanded such a rapid shift in model.
Technology such as artificial intelligence, machine learning and increased power for software and hardware, will shift the insurance industry away from a ‘detect and repair’ style towards a ‘predict and prevent’ methodology, according to McKinsey.
“The pace of change will also accelerate as brokers, consumers, financial intermediaries, insurers, and suppliers become more adept at using advanced technologies to enhance decision making and productivity, lower costs, and optimise the customer experience,” their report states.
It also represents a terrific opportunity for tech disruptors like MyFiziq (ASX:MYQ) and specialist insurance underwriting agencies like Ensurance (ASX: ENA).
MyFiziq’s unique body measurement technology can provide insurers with predictive health outcomes and dynamic policy underwriting, as well as the ability to measure body fat as an indicator of health status.
Ensurance, which operates as an insurance agency both in Australia and the United Kingdom providing specialist, forward-thinking insurance policies, has just launched an Australian-first latent defects insurance product for builders, homeowners, developers, and body corporates.
This content is produced by Star Investing in commercial partnership with MyFiziq and Ensurance. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Don’t miss a thing, subscribe now