The ABI’s assistant director of strategy said digitally-focused pioneering firms across all industries were now challenging the norm. He highlighted the success of services such as the taxi connection app Uber and the accommodation-sharing website Aribnb. He said digital innovations were now also creating ‘new insurance environments’.
Cullen, who was speaking at the Westminster Business Forum about the future of the insurance sector in the UK, said: “I think this is a systematic megatrend with more scope than any other to revolutionise how insurance businesses operate, and that is rapid and relentless technological change; the rise of the digital economy.”
Cullen claims the main challenge insurers in Britain now face as a result of this digital revolution will be the technical one. Although, he also claims there will be commercial challenges, such as pricing, as well as issues related to public policy – this includes questions over how to use data in a way that is acceptable to both consumers and regulators.
As consumers embrace digital solutions, however, Cullen voiced concerns over the use of price comparison sites which merely focusing on the price of an insurance policy with the wording of a product often going ignored.