Technology is causing a dramatic shift in the fundamentals of the insurance industry, according to Brian Duperreault.
The CEO of Hamilton Insurance Group said that the arrival of data technology was changing how his business and other insurers go about their work. Referring to the industry as ‘broken’, he warned that insurers will need to change their approach or risk being left behind as competitors embrace new opportunities.
Duperreault said: “I can't overestimate the dramatic shift taking place in the industry, all driven by technology. Are we all destined to become technology companies who market different products?”
He warned that the shift to a digital world is having a profound impact both inside and outside of commerce.
“We are caught between an analogue and a digital world – a tectonic shift – and that shift is affecting us as we live through it.
“For my generation, in many respects, it's an alien world, one turned upside down.
“There is a growing acknowledgement that analytics and data are overtaking our industry, and that's what's driving this disruption that we're all talking about. This digitally created disruption is disrupting everything we write, every risk we take.”
He added that the disruptive approach to business shown by innovative firms, such as home and vehicle sharing services like Airbnb and BlaBlaCar, should demand ‘a new mindset’ from insurers in calculating risk and providing products.