AAIS President and CEO Ed Kelly discusses the major issues industry executives are concerned about heading into 2018, including technology, the new economy and buying behavior, as well as government regulation.

While technology remains an enabler in the insurance industry, Mr. Kelly notes that the new uses of technology are the “disruptors.” “We’ve seen that with automation…the use if drones, telematics, Big Data, the Internet of Things (IoT)….even Blockchain and cryptocurrency will have an impact on the insurance process.”

Mr. Kelly notes that AAIS monitors has updated its programs and built out its infrastructure to respond to keep pace with technology and to add value for its members. He says a special team within AAIS is studying the impact of insurtech trends on the industry.

The sharing economy presents its own challenges, with Uber drivers using their personal auto as a taxi, and Air B&B participants using their homes as a hotel. New consumers are looking for insurance products that respond to the way they use their cars and homes. For insurers who respond to these demands, there is tremendous opportunity.

Many insurance coverages are borne of new regulation and legislation. Mr. Kelly sites regulation around the use of drones and the use of marijuana as examples of regulation and regulation impacting the insurance industry. He says AAIS is developing a CannaBOP program in cooperation with regulators to address emerging needs for coverage surrounding the use of medical and recreational marijuana. AAIS’s Government Affairs, Legal and Compliance Group closely monitors the regulatory environment, so they can advise members on regulatory, judicial or legislative developments.

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