The Effects of New Technologies on the Insurance Sector: A Proposition for Underwriting Qualifications for the Future

Deniz Güney Akkor and Suna Ozyuksel ()
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Suna Ozyuksel: Istanbul Commerce University, Turkey

Eurasian Journal of Business and Management, 2020, vol. 8, issue 1, 36-50

Abstract: The aim of this study is to offer a pioneering perspective on how new technologies may affect the core business functions in industries, while presenting an example through the lens of the relationship between the insurance sector and underwriting. Unless otherwise noted, the scope of the study is international. In this article, new technologies and their use in the insurance sector will be discussed and the effects of these technologies on the underwriting process will be examined. Also, the study will investigate the effects of the digital transformation on the insurance sector workforce, especially on underwriters while new technologies and their use and effects that insurance companies should consider in order to assess their current state and improve their underwriting capabilities as organizations. In this respect, industrial revolutions, industry 4.0 and its effects on the workforce, digital transformation and its implementations in the insurance sector are examined. Relevant competencies are identified and categorized based on the current challenges posed by new technologies. A comparative literature analysis was performed to identify the existing qualifications of a competitive insurance underwriter. The competencies and skills that make up these qualifications are determined and logically matched with the new competencies which are created by the nascent challenges of the new technologies. According to the results of this study, gaps between the extant competencies of workers as compared to evolving required qualifications are widening very fast, which indicates an urgent need for an increased level of education for the workforce. In addition, the particular competencies of an insurance underwriter that should be prioritized for development are revealed. Based on our investigation of the insurance industry; preparedness for both disruptive and transformative challenges, better talent training programs, and increased up skilling training activities in order to maintain competition and furthermore, focus on building differentiating capabilities are recommended. Keywords: New Technologies, Insurance, Underwriting, Skills, Competencies, Qualifications Journal: Eurasian Journal of Business and Management

Date: 2020
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