The Economy/Inflation, Talent Acquisition and Litigation Top Concerns; Integrity, Security and Accuracy Lead Priorities for Data/Technology
Throughout 2022, AAIS conducted several surveys from a cross-section of insurance professionals, many associated with insurance industry events. What emerged from these various surveys was a view of the top issues and concerns facing the industry as well as the priorities placed on data and technology initiatives. This summary presents the aggregated results of those surveys. We trust this information is useful for AAIS Members and other industry stakeholders as a catalyst for discussions surrounding the development of solutions for the most pressing issues that lie ahead.
Among all survey respondents — which included insurance carriers, reinsurers and insurance service providers — the economy and inflation ranked as the most urgent concern. This was followed by talent acquisition, litigation and tort reform, climate risk and natural catastrophes, and regulation. Some of these emerging issues come along with some that have been hampering the industry for years.
The second part of the survey focused on data and technology issues, and results reiterated the importance of data is weighing heavily on the industry. With accelerating advancements in technologies and the availability of data, AAIS sought to understand the priorities insurance professionals place on merging capabilities and technologies affecting the industry, now and in the near future. Data integrity and accuracy was the top priority, followed closely by data security and privacy and accuracy of risk models. Ownership and control of proprietary data, big data and regulatory reporting were also among ranked top priority concerns.
Equally interesting is the list of "low" priority data and technology issues and initiatives, given the potential they have to impact the way the industry may leverage data and
information and transfer risk in the future. Respondents ranked artificial intelligence (AI) and machine learning either as low priority or not a priority. Given the media attention on the quickening development of AI, this is surprising.
The insurance industry had been an early adopter of technologies that have helped establish cottage industries in risk modeling, fraud prevention and usage-based insurance. However, the industry grapples with the quickening pace of developments in technologies and the resulting increased volume of data availability. It is therefore to see the lack of prioritization surrounding new and emerging technologies like AI, Machine Learning, Blockchain and Distributed Ledger solutions. Consider the potential these technologies have to address the very issues that are Top Priorities among insurance professionals:
- Data Integrity/Accuracy
- Data Accuracy
- Ownership/Control of Proprietary Data
- Overall Data Management and Sharing
- Regulatory Reporting
AAIS surveyed stakeholders within the property-casualty insurance market, from New York to Florida to California, from stock companies, mutuals, personal and commercial lines carriers, as well as inland marine insurance companies. More than 230 insurance professionals responded to AAIS surveys. Most were from insurance carriers, however, there was representation from reinsurers, third-party insurance service providers, and others.