Insurance technology has evolved from its humble beginnings nearly 40 years ago, as Oxbow Partners explained. The role of technology has shifted from a simple record-keeping tool into the very core of the business.
The digital age is already behind us. We are now entering the next exciting stage: the platform age.
The Four Ages Of Digital Insurance Technology
According to the Oxbow Partners analysis, insurance technology has undergone three major paradigm shifts since the 1980s. We are now on the verge of the third technological revolution — a shift from the digital age into the platform age… Let’s look at a short overview of the stages, as Oxbow Partners describes them, and the role of technology in each one.
As personal computing took off in the workplace, technology started to shift beyond being a data repository and managing core processes. The link between technology investment and business results became clearer.
We entered the digital age with the new millennium as technology underwent another fundamental shift. Technology moved even closer to the front and center of the business, providing immediate business value. Brokers and insurers became increasingly reliant on technology to generate new business.
We are now entering the platform age of insurance technology. Technology and business are now becoming "fundamentally inseparable." Cloud computing and API-driven integrations ensure that technology is now permeating every single process within the organization. Technology teams are now inseparable from customer acquisition and customer retention efforts. Core infrastructure and even application development can be handed over to technology providers (such as AWS, Azure for infrastructure, and no-code platforms for application development).
Where Do We Go From Here?
Now that technology is the business, technology leadership has also evolved from a business enabler to a business driver, innovator and leader.
The CIO’s role is no longer just focused on technology, but also on the business value. Bringing in new customers is as much the technology’s task as it is the sales team’s task.
Platforms that help organizations take ownership of their data to improve business outcomes are becoming more and more crucial for success. The focus is now shifting from functionality toward enhanced customer experiences with technology.