In this episode, Ryan is excited to welcome James Benham, CEO, and Co-founder of JBKnowledge to discuss how data, analytics, and technology are revolutionizing the way insurers do business. With over 20 years of experience in insurance service technology, James shares the value of digital transformation and how investing in these innovations is empowering insurance companies like never before.
Managing disruption as business models change has proven challenging for leaders, especially in industries resistant to change. With the number of companies rolling on and off the S&P 500 over the years, Benham believes the insurance industry will continue to persist. However, individual companies that do not restructure their business model will likely not survive.
Entrants that prove disruptive begin by successfully targeting those overlooked segments that are not constantly innovating. Using innovation to grow business is crucial for companies today. James reiterates the need for continually retooling and improving processes to generate revenue and keep your name out of the graveyard.
The reality is that disruption is going to occur to us or by us. One way or the other, companies will either be the disruptor or be the disrupted.
Broker Technical Debt
Almost every insurance agency has some form of technical debt. The term “technical debt” is a metaphor for a concept of delaying technology to expedite the delivery of a goal or project, knowing it will also cause more rework in the end.
In other words, it’s the result of prioritizing speedy delivery over perfect code. For brokers, knowing how to identify, value, and manage is a must to stay a step ahead of the competition.
Benham describes how aging programs and software will incur technical debt by introducing bugs, deadlines, outdated designs, or missing data to systems. Solutions for these types of issues will only accumulate, making the initial problem increasingly costly and timely to fix later. However, James recognizes survival is more important than margin. Customers demand options with quick access to functionalities and we must meet this demand to stay in business.
Survival is more important than margin. If you have to wipe out your profit margin to catch up – wipe it out! The alternative is being wiped out of business. We call this technical debt.
Robots and Predicting the Future
The future is here. Using artificial intelligence and predictive analytics, Benham says brokers can identify the most effective channels for delivering this market data. Consumer habits and their online presence are tracked and analyzed like never before, and insurance marketing returns are proving just how powerful that data can be.
James declares that's what we are seeing there. Consumers are getting smarter by negotiating fees to fixed fee brokerage.
He further discusses the broker community asking for a suite of technology services that connect with our customers and stay competitive in this market.
Predictive analytics is using a machine-learning algorithm to better access the risk and to arrive at the conclusion faster.
Many industry leaders are forecasting that rapid advances in technologies will lead to disruptive changes in the insurance industry. The growth potential for companies integrating artificial intelligence-based insurance using the latest technology will be astronomical in creating innovative products, streamlining processes, and lowering costs.
Companies adopting an attitude focused on creating opportunities from disruptive technologies and not viewing them as a threat will thrive in the insurance industry for years to come.
Be sure to tune into next month’s episode as we continue our discussion with James Benham on technology, predictive analytics and so much more!
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