InsurTech Magazine July 2021 | Page 94

Insurtech 2030 - what to expect
AI

Insurtech 2030 - what to expect

Four trends that are changing the face of insurance forever , according to McKinsey
Data explosion from the IoT There will be a massive increase in the amount of data available to insurance companies by 2030 as devices in all walks of life gather , connect and send data . These will include cars , fitness trackers , home assistance , smart wearables , home monitoring smart devices and mobile phones . Experts estimate there will be up to one trillion connected devices by 2025 .
Robots will become commonplace The field of robotics is expanding at an exponential rate . Experts estimate that by 2025 , additive manufacturing ( 3D printing ) will radically reshape manufacturing and commercial insurance products . By 2030 , a large proportion of vehicles on the road will be self-driving .
Open source and data ecosystems Open source data will be shared across industries , and public and private entities will work together to create ecosystems to share data for multiple use cases .
Cognitive technology Convolutional neural networks and deep learning technology will evolve and be applied to a much wider sphere . These cognitive innovations are loosely based on the human brain ’ s ability to learn .
Brian Mullins : AI is very embedded in the insurance market , especially compared to other sectors within financial services . Several breakthroughs have been made largely by disruptors , who have used AI to change insurance methodologies and that investment continues to optimise their business practices , widen their competitive edge and offer customercentric products .
However , we will look back ten years from now and see that we were only beginning to scratch the surface of what is really possible . The desire to change and implement all of the benefits of AI is tampered with by the reality that many insurers are large organisations with workforces and work practices that will take years to adjust . This is why much of the innovation to date has been the preservation of insurtech disruptors .
94 July 2021