Technology and the Insurance Industry

Paper Summary:

This paper covers the impact of technology on the insurance market, giving emphasis to one aspect of insurance, underwriting, and also includes the trend of insurance and technology in Canada. The paper also considers the benefits and risks of the technology and concludes by finding that the advantages outweigh the risks.

From the Paper:

"Let us consider the specific case of using technology in one aspect of the insurance industry, namely underwriting. A common problem facing all underwriting companies is that their underwriting processes of evaluating the application and issuing new policies involves paper, time and cost. A study showed that some insurance companies realized that the time they took to issue a new life insurance policy as well the costs associated with it ate into their profits since it exceeded the industry average itself. This gave way to the concept of electronic underwriting to expedite application processing and policy issue time by eliminating duplicate or unnecessary policy issuance, automatically finding out what is needed as underwriting requirement for a specific application, and automated issuance of policies."

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