Insurers should adopt open architecture: Aon
The life insurance industry should look to partnerships with disruptive technologies in order to capitalise on the rapid growth in InsurTech investment, according to Aon.
Investment in insurance technology has grown 55 per cent since 2016, Aon said in a statement, presenting opportunities for the life insurance industry to expand into emerging risk markets and become more efficient.
Aon global chief executive of analytics Paul Mang said that these opportunities “vastly outweigh the threats” posed by disruption, and he encouraged insurers to adopt "open architecture" to make the most of new technologies.
“This could include partnerships with even the most entrepreneurial start-ups that some have labelled disrupters. We can help new technologies and new business models be adopted faster by reducing risk and volatility,” Mr Mang said.
By “innovating the way it innovates”, Mr Mang added, the life insurance industry will be able to meet the challenges presented by changing societal and technological pressures and “inevitably create entire new opportunities and needs for risk management”.
He said: “Analytics, coupled with technological innovations, will enable us to address stubborn industry challenges and open new growth opportunities for the sector to tackle evolving risks such as cyber, pathogens and casualty catastrophes.
“The true transformation of our industry will happen as we re-imagine risk management altogether, exploring the synergies between evolving societies and technology.”
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