Expert Perspectives: Automation and Aviation Insurance
There seems to be general agreement in the aviation insurance industry—as in most business sectors—that automation can deliver improvements in everything from performance to profitability. But if you go beyond that high-level assessment, what do experienced professionals really think about automation? We posed some key questions to a group of industry experts.
Where Does Digital Sit in Your Business Priorities?
“‘Digital’ means something different depending on company size. Our larger member companies embrace and build on digital capabilities constantly, leveraging data and offering value-added services to insurers and clients. Pressures on budgets and spending reduce the ability of smaller entities to embrace and utilise changes in digital technologies. Mid-tier members are often the real innovators, as they have the budget to invest and the size to deploy technology effectively.” – James Livett, Associate Director, London & International Insurance Brokers’ Association
What’s Next for Your Business with Technology?
“All our members have digital somewhere in their priorities. Some are leading the way and others are being more cautious. Many members are collaborating with start-ups to look at new innovations. We have members exploring a wide range of advances including augmented reality, AI, blockchain and analytics. It’s clear that many of our members see new technology as having the potential to be truly transformational.” – Louise Day, Director of Operations, International Underwriting Association
Can Technology Ever Replace People in Your Business? If so, Where?
“I don’t think we’ll ever see technology completely replace humans in the insurance industry, especially in roles that require subjective judgment and experience for claims management and underwriting. I do think there will be a shift in the types of skill sets that will be required in the future. It’s entirely possible that a background in IT instead of one in accounting or law might become the new standard as companies implement automation and AI.” – Jeff Bruno, President and Chief Underwriting Officer, Global Aerospace
The commercial air transport industry is experiencing an unprecedented level of long-term AOG (Aircraft on Ground) issues resulting from mandated groundings and multiple Airworthiness Directive (AD) regimes, affecting both variant and new type power plants. To understand the reasons behind this, we need to consider where the industry is in terms of the large transport aircraft development cycle.
The aviation sector may be on the cusp of major transformation. While it has continuously developed over the past century, new technologies are currently being developed that have potential for a transformative impact.