Regulators must adapt as tech changes insurance

Insurance is changing as companies use artificial intelligence (AI), Internet of Things (IoT), and blockchain.

- SHAILAJA LALL

With the emergence of such technological innovations in the insurance value chain, regulators have to manage new questions and challenges.

Over the years, consumer needs have evolved rapidly. Distribution channels have become digitalised and IoT, a network of interrelated devices that connect and exchange data, is shaping how risk is underwritten. The insurance industry is being increasingly disrupted in its traditional models in these ways:

AI: It enhances decision-making and personalises customer interactions. For instance, AI-powered chatbots provide instant customer support and expedite claims processing. Machine-learning algorithms analyse vast datasets to assess patterns of risks more accurately, allowing insurers to offer more personalised products to different sets of customers.