Leveraging technology for innovation in insurance companies

Abstract

The insurance industry is known for its inventiveness. Technology has had a major role in the rapid evolution of company models, services, and operational procedures. The particular historical context of the COVID-19 pandemic serves as a relevant example of the significance of using technology to quickly address known and unknown threats. We have been able to pinpoint the industry's innovation mechanisms by looking at the initiatives that top insurance companies have taken. We have identified four main justifications for these efforts: aggression, response, expansion, and adaptation. Depending on how innovation and technology relate to the risk portfolio under management, these justifications differ. In the end, it's evident that insurance firms are leading the way in innovation, often using technology to counter both emerging and pre-existing problems. Fundamental business operations like product development, sales, and claims management serve as examples of how innovation fueled by new or existing technology affects a company's capacity to compete and thrive.