North American insurers lead the way in IT spending globally and will invest $73 billion in tech areas such as data analytics, cloud, and insurtech in 2017.
Digital Insurance reports that global IT spending by insurers is slated to reach $185 billion by the end of this year, according to the Celent “IT Spending in Insurance 2017” report.
After North America, insurer technology spending by region is as follows: Europe ($69 billion); Asia ($33 billion); Latin America ($5 billion); then a group of territories comprising Africa, the Middle East and Eastern Europe (around $5 billion collectively).
Three overarching trends – digitalization, data analytics, and legacy and ecosystem transformation – still dominate investment, Celent said.
“In a few markets globally, we have seen a slight reduction in IT spending this year. Generally, the more mature markets remain under pressure to demonstrate value through efficiency,” said senior vice president Jamie Macgregor.
Today’s selfie may already be posted on Instagram, but consider this: one day it could be part of your application for life insurance.
NerdWallet reports that several life insurers are testing technology that uses facial analytics and other data to estimate life expectancy.
The tech company in focus, Lapetus Solutions, says its product Chronos, would enable a customer to buy life insurance online in as little as 10 minutes without taking a life insurance medical exam.
NerdWallet explains that state regulatory approval would be required for an insurer to be able to use Chronos in the underwriting process. Once approved, here’s how it would work:
“You’d upload a selfie to the insurer online and answer health and other questions. The facial analytics technology would scan hundreds of points on your face and extract certain information, including your body mass index, physiological age (in layman’s terms, how old you look) and whether you’re aging faster or slower than your actual age.”
The facial analytics angle is just one example of how life insurers are exploring the use of data, statistical models, artificial intelligence and other innovative techniques in their business.
Time and testing will tell which new approaches prove effective, says Robert Kerzner, president and CEO of LIMRA: “This one may or may not meet the vetting process to make carriers comfortable.”
What do you think?
Check out I.I.I. facts and statistics on life insurance.