The insurance sector will become ‘unrecognisable’ as technology continues to evolve

The insurance industry will be ‘unrecognisable’ within a few years as technology continues to change the way firms operates, according to Julien de Salaberry, CIO and founder of investment and advisory firm The Propell Group.

Also the co-author of iDisrupted, de Salaberry claims that the rapid advancement of technology will lead to the demise of existing business models within the insurance sector. He points to the introduction of telematics and usage-based vehicle insurance as just one example of how technology changing existing business models.

“About two-thirds of new cars have multiple sensors that are creating a mass of data offering the potential for car makers to find out more about how drivers use their vehicles. This could also provide insurers with personal information about the drivers they insure. It is very likely our premiums will be tailored to directly reflect our driving style, where we drive and park,” said de Salaberry.

The CIO added that usage-based vehicle policies are already being rolled out in the UK and Italy, among other countries.  He adds, however, that wearable technology could also prove to be another instigator of change within the insurance sector.

Wearable technology and sensors on mobile devices are enabling doctors to have more information about patients and can potentially provide insurers with more accurate data about people’s lifestyles. This, according to de Salaberry, will enable insurers to: “Tailor our health insurance premiums accordingly.”