Insurers should plan to replace new technology before it is even deployed

Technology in the insurance industry is changing so quickly that firms need to plan to replace new solutions before they are implemented, Rob Issacs of Novarica has claimed.

The analyst said modern technology was now such a fleeting thing that it may not be fit for purpose within in a few years. He compared new insurance technology with modern consumer devices such as the iPhone. “Is anyone paying real money to fix an iPhone 4. Of course not. They were height of cool a few years ago and helped to change the world we live in. Now they are disposable.”

He added: “We would have had a challenging time describing some of the things that would be key drivers for business success five years later.  That will be even more true as we think about 2019 or 2024.”

Issacs claimed, that in the future, the cloud model of ‘renting’ technology may become even more prevalent as firms look to keep pace with this speed of change.

“A variety of factors have now come together to make this a viable option. If email for large, complex, highly regulated companies can live in the cloud, a host of other things like policy administration, claims, distribution management and financials can too,” he said.