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In an article originally published by The Post Online, Kennedys shared its views on insurtech highlights from 2022, while looking ahead to what 2023 holds for the industry.
As the world continues to grapple with significant macroeconomic events - whether it be the after affects of the Covid pandemic, the war in Ukraine or the current economic downturn – there is no doubt that technology remains critical in helping address some of these challenges.
The marriage of technology and insurance, is no exception. Insurtech has delivered market leading industry innovation, and offers immense unexplored potential for further innovation and problem solving.
What were our learnings and highlights from 2022?
Deborah Newberry, director of corporate affairs at Kennedys summarised her highlight. “Without question, it was the creation of our Reputation Adviser consortium. We were awarded funding by Innovate UK to develop software that will better identify and assess reputational risk. We think this is a game changer. The end tool, Reputation Advisor, will be able to identify and assess firms’ reputational risk, particularly in respect of environmental, social and governance issues. The project isn’t due to conclude until the end of 2023, but our early development work has already demonstrated why this tool could revolutionise the insurance market and help businesses have far greater awareness of their reputational risks in respect of ESG.
To create a product like Reputation Adviser, it requires the best talent. Mike Gilpin, commercial director at Kennedys IQ, highlighted the growth of Kennedys IQ and the importance of people equity being his highlight of 2022, “The growth of Kennedys IQ, and the talent we have attracted. To innovate in this sector, you have to collaborate, and I am really proud of the way we’re building a team with practical industry experience, deep legal insights and intellectual rigour. We house former claims managers through to data scientists. It’s an eclectic, but powerful mix of talent”.
Innovation, through the use of technology will continue to transform the insurance industry and the businesses that it serves. But how?
Looking ahead to 2023, Richard West, partner and head of innovation at Kennedys, has a clearly defined ambition for Kennedys, “My mission is to accelerate our client innovation trajectory, so unexpected – even if they are understandable – hurdles are frustrating. The Covid-19 pandemic has been compounded by the Ukraine crisis, creating extraordinary changes in the global risk landscape at a macro level, and with regard to specific challenges to business. That has meant that all business has, at times, tended to become reactive rather than proactive, with the wider industry understandably needing to direct finite resources to manage extraordinary and generational geopolitical dynamics. That said, though, such challenges have also created opportunities”.
Richard’s sentiments are confidently echoed, with the team at Kennedys believing that the market is in a pole position for insurtech to fully make its mark on 2023, in an impactful and industry changing way.
Insurtech is probably in the best position it has ever been in. It is steadily maturing and there is growing acceptance and adoption across the insurance market of the need to collaborate and invest – in regard to technology and talent. We have seen significant adoption of AI and other advanced technologies, and also now have new and emerging technologies, such as decision science, which is an exciting area we are working on.
Deborah concludes, “Now is the time for insurers to increase the calibre, pace and reach of innovation. Being open to creativity and willing to innovate upon existing processes is critical to adapting to the ever-changing demands of the market and realise opportunities for growth”.
For further insights on the insurance trends of 2023, we encourage you to read our Insurance Forecast 2023, which expands on the claim trends and future risks.
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