Natural Language Processing - August 21 2019
Frank Sentner has been providing technology solutions to the insurance industry for 43 years. He was an insurtech pioneer long before the industry coined the phrase. Among his many contributions to the industry, Sentner designed and directed the development of Sagitta, the first ACORD-based agency management system, which is used today by some of world’s largest insurance brokers. He has managed major policy, billing, and claims system replacement projects for insurers and has provided strategic consulting for many insurance brokerage firms, concentrating lately on mentoring Start-up InsurTech firms as a Hartford InsureTech Hub mentor. We sat down with Frank to ask a few questions about the current state of data standardization in the global P&C insurance industry, the InsurTech Revolution, and where insurance carriers and brokers need to focus next.
Frank, you were spearheading innovation in insurance before InsurTech was cool. Can you talk about how the insurance industry has changed since the InsurTech Revolution has taken hold? What is the next big breakthrough in insurance technology that carriers and brokers need to prepare for?
Currently, it’s more accurate to call this the InsurTech Evolution… since most of the investment and innovation is benefitting incumbents, some of whom have been quick to seize upon these opportunities. For those insurers and agents that lack sufficient motivation in this regard, there are significant disruptors (which get more than their fair share of press) who are nipping at their heels. More than half the InsurTech innovations that I see are focused on risk mitigation rather than risk transfer technologies. This may well lead insurers and agents to embrace IoT (Internet of Things) technologies and concentrate more of their time and energy on engineering and loss control, as was once the case before the industry chose to focus on purely financial operations. The benefit of this approach is that risk mitigation services are a lot “stickier” than financial risk transfer services, which should reduce “churn” and enhance profitability.