Insurance Industry News & Views - April 7 2021
Alan Demers, CPCU, AIC is President of InsurTech Consulting. With 30 years of P&C insurance experience, Alan provides strategic development, subject matter expertise and advisory services. A former insurance executive, most recently initiating Claims Innovation at Nationwide, Alan collaborates in the forefront of insurtech, partnering with insurance leaders, start-ups and service providers to modernize personal, commercial and specialty insurance. We sat down with Alan to ask a few questions about digital transformation in the commercial insurance industry, Insurtech partnerships, the key trends impacting commercial lines underwriting today, and why he is passionate about the future of insurance.
Alan, you recently contributed to our crowdsourced eBook Underwriting Priorities 2021 & Beyond. In your chapter, you and co-author Stephen Applebaum argue that commercial lines underwriting in 2021 is a whole new ballgame. How is the art and science of underwriting evolving, and which technologies and digitization initiatives should carriers focus on to make their underwriting processes more efficient, profitable, and responsive to customers?
Art and science is a great way to describe the underwriting process where science or data is applied to the humanized art of risk selection. Underwriting practices are evolving by adding more and better science as data is constantly growing and improving. The science part of the equation has really accelerated with broader and deeper information, i.e., big data, public information, geospatial, and new technology. Each are giving greater insights on behaviors and clearer context to risk characteristics. In just the last few years, technology like telematics, wearables, and sensors have mushroomed, along with artificial intelligence which is advancing rapidly.