If the spectacle of InsureTech Connect 2023 slipped through your radar, fear not. We are here to distill the essence of the event, sharing with you a glimpse into the future of insurance technology.
We had the privilege of joining the ITC 2023 in Las Vegas as a key sponsor, and we cannot wait to share the updates with you. Just like in years past, this three-day adventure connected us with global leaders, innovators, disruptors and decision-makers in the InsurTech realm. We’ve encapsulated these insights in this blog, extending the experience to those who couldn’t partake in the world’s premier gathering of InsurTech innovation. So, dive in, have a read, and don’t forget to share your thoughts with us.
Setting the Stage: The LCNC Revolution
Low Code No Code (LCNC): At the core of ITC 2023 discussions, LCNC is poised to be a game-changer for InsureTech. Think about it – who would not want to make complex product development tasks a breeze with just a hint of code? And when you toss in a dash of AI into LCNC, that could be the perfect recipe for unparalleled efficiency and innovation.
Now, the insurance market is abuzz with these no-code platforms. We are glad to meet some of the LCNC disruptors like Form.io, InsureSoft or Appian, who are already leading the low-code/no-code conversations with their impressive range of tools and solutions.
LCNC platforms revolutionize the landscape for both new entrants and incumbents. For startups, these tools streamline claims processes, create flexible policy systems, design user-friendly onboarding, and facilitate swift iteration of risk assessment algorithms. Incumbents benefit from LCNC’s agility, enabling rapid updates, user-friendly interfaces for claims adjusters, and modernization of legacy systems. LCNC also supports the integration of new data sources and adjustments to risk assessment criteria without extensive IT involvement, ensuring adaptability in response to industry shifts.
But, here is a note of caution. If you are considering a transition to a no-code platform, we’d suggest calculating the intangible benefits and risks before taking the plunge. The decision should go beyond simplifying complex legacy systems and focus on establishing a robust business case that yields visible results for the end customer. Do also consider security implications because, after all, the citizen developers are not necessarily cybersecurity experts.
Open Source’s Resounding Applause in LCNC: The next big development is a growing need for LCNC options that do not lock-in a business to exclusively use their platform. In the quest for innovation, the InsurTech community’s appetite for collaboration and open dialogue has led to a resounding call for open-source frameworks within the LCNC realm at the ITC 2023. The panel “Embracing Open Insurance: Unlocking New Opportunities” underscored how the adoption of open-source technologies can act as a catalyst for innovation, collaboration, and scalability within the industry. Krish Krishnakanthan, Senior Partner at McKinsey & Company, offered strategic insights into regulatory and market trends. Sasha Sanyal, Global Head of Insurance at Microsoft, shared her perspectives on the impactful role of cloud platforms, data analytics, secure compute, and AI within the realm of Open Insurance. The industry must foster a collaborative ecosystem where ideas flow freely, and innovation knows no bounds.
Open Source projects like Hyperledger Fabric, TensorFlow, Open Insurance Initiative (OII), OpenSSL project, or Django have already gained widespread adoption in both the insurance and InsurTech sectors, demonstrating substantial and proven impact.
So, all the InsurTech trailblazers, it’s time to align your technology strategy with open-source principles, cultivate a team well-versed in open-source technologies, identify areas in your operations where customization can bring a competitive edge, and leverage the right framework, but most importantly, Find the right balance between leveraging the latest innovations and maintaining stable, reliable systems. Open-source frameworks offer a spectrum of options—choose wisely based on your organization’s risk appetite and goals.
Gen AI: Redefining the Coding Paradigm
AI’s Inevitable Embrace in InsureTech: It is not a passing fad; it is a paradigm shift. A staggering 80% of the InsureTech leaders and decision-makers we engaged with at ITC 2023 are already harnessing AI at some scale.
Chief AI Officers (CAIO)—A New Exec Role on the Horizon: What seemed like a distant dream yesterday is now our everyday reality, and the same holds true for this new abbreviation that made rounds at ITC 2023. This new role is CAIO or Chief AI Officer. And this prospect is not just plausible; it is inevitable.
Think of CAIOs as decision-makers who pick the right tools, for example, the right NLP for document analysis or the ML for fraud detection. In the coming years, they will also be in charge of data quality and integrity as well as compliance. From claims processing and customer experience to partnership collaboration and AI model performance evaluation, this new role shoulders great responsibilities and offers immense possibilities.
On that note, it wouldn’t be an overstatement to claim that the future of InsurTech will pivot from being tech-first to AI-first. Therefore, having a skilled pilot to navigate your organization in this direction is crucial. Which means, it is time to prepare a JD for the new big hire!
Charting New Territories: Geospatial Insurance and Beyond
Geospatial Insurance: Tailoring Offerings to the Landscape The discourse at InsureTech 2023 extended beyond conventional realms to embrace the potential of geospatial insurance. Imagine premiums tailored not just to risk profiles but to your geographic coordinates. This innovative approach finds resonance, particularly in industries such as agriculture and automobiles, offering unprecedented customization and precision in insurance offerings.
The Trigent Verdict: Charting the Course Ahead
So, all said and done, it seems the imminent future of InsurTech will be marked by Open Source frameworks, ready-to-use Open APIs, LCNC, and most importantly, automation and AI. Now, there’s no denying that AI is the latest buzzword in town. But here’s the lowdown: while they’re handing out perks left and right, there’s this elephant in the room called ethics and privacy. So, keep data security and the ‘potential for bias’ in consideration when leveraging AI for elevating your InsurTech solutions. We are all for progress, but humans are still the MVPs.
Lastly, the resounding success of this year’s event not only highlights the current momentum within insurTech but also charts an exciting course for the future of the insurance sector. At Trigent, we are excited and curious to be a part of this transformative journey as the stage is set for a compelling evolution.