Digital Transformation - October 2 2019
Robert Hartwig is clinical associate professor of finance and director of the Risk and Uncertainty Management Center at the University of South Carolina’s Darla Moore School of Business. His research focuses on insurance markets and structures, risk management, risk-bearing capital market instruments, the financing of technology risks and venture capital in insurance markets. We sat down with Robert to ask a few questions about how the insurance industry can navigate what he calls an “era of innovation, disruption, and ambiguity.”
Robert, you frequently present to insurance industry management, boards of directors, regulators and legislators. What are the key challenges facing the insurance industry today? What keeps insurance executives up at night?
Insomnia is rampant throughout the C-suites of insurance companies large and small. But atop the list of what keeps insurance executives awake at night are: competition, growth, and technology. Markets remain intensely competitive across the personal and commercial lines space. Overall industry growth is constrained by generally flat rates and a tepid economic environment worldwide. To make matters worse, interest rates are once again falling. Technology is a multi-dimensional concern. Many companies fixate on cost, but implementing new technologies and platforms involves significant execution risk.