Cyber risk and insurance continue to evolve, but the insurtech explosion is the real news at the moment, according to Gavin Souter, Editor of Business Insurance.

Like all things related to technology, cyber insurance is evolving rapidly. Insurers and brokers are keen to sell cyber policies, but commercial buyers do not believe the insurance offered is enough to cover their exposures. With cyber risk so pervasive, buyers are wondering why cyber should be a stand-alone coverage.

Mr. Souter believes many in the industry are wondering what impact insurtech will have on the industry. While the insurance industry has a reputation as a technology laggard, developments over the past 20-30 years have seen incremental but dramatic changes in the way insurance is purchased. Looking ahead, there are a huge number of technology firms coming into the industry, while insurers are investing in their own initiatives.

Much of the development in insurtech so far has been in the personal and small commercial lines space where we’ve seen technology solutions involved in everything from binding to paying claims. Long-tail casualty and multinational property coverages are more complicated, however. Insurtech solutions are more likely to assist existing players such as brokers and claims adjusters.

In ten years, who knows? Mr. Souter recalls that “Big Blue did eventually beat Gary Kasparov. So, technology may win in the end.”

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