Insurance 2025 — can technology deliver sustainable growth for a more certain future?
Part II

Jan 24, 2023 by Jeremy Owenson


In brief

  • The insurance industry has been relatively slow to adopt technology, but the pressure to stay competitive is growing.
  • To achieve sustainable growth in the future, insurers will need to focus on improving customer experience, enhancing operational efficiency, and leveraging data and analytics to make better decisions.
  • Advances in technology like AI, blockchain, and the Internet of Things are poised to revolutionize the industry, but insurers must also be mindful of the ethical implications of using these technologies.



In our second article of the series, Luxoft insurance expert Jeremy Owenson explains how the technology of today will evolve to transform the future of the industry. Part 1 looked at what we can learn from the challenges of the past few years.


Future technology is already here


Luxoft is committed to remaining at the forefront of technology, even though the tech of the future is actually available today. It might be in beta testing or a version where we only use a fraction of the functionality. Today’s technology is way ahead of where we were even 5 years ago and is set to continue in the same vein.

However, currently, we're only using a sliver of the incredible power at our fingertips. But modern technology is component-based. Cloud-native. Interchangeable. And the great thing is, as long as it continues to develop along these lines and we use it wisely, technology will evolve seamlessly instead of continually requiring step changes in how we work.


Spare brain power


Redundant technological capability is a bit like our relationship with our brains. Folk science says we only use 10% of our brains and possibly have psychic powers but because we don’t use 90% of our brain power, we can’t access them. In fact, we use all our brains all the time. But in a way, organizations that have bought technology recently have that “capability” on tap. Decision-makers with new analytics platforms talk about how all workflows have AI built-in, but they’re not necessarily using it.

Could data analytics be a kind of psychic discipline? That might explain the modern marvel of AI and machine learning. Machine learning is not some crazy alien force bent on taking over the world like “Terminator 2”. Its potential is there for all to see — a notorious chess cheat claimed that a simple mobile phone app could beat a grand master. Machine learning is here, but we're not using it to its fullest extent.

Technologists will bring the next phase of technology development down the line in 3, 5 or 10 years. In the meantime, you need to explore and exploit what you already have.


Horses for courses


Take marketing as an example. If you're trying to sell online products and services, why not bring in a specialist in online retail? Someone with experience selling goods for Freeman's, Amazon, or whoever. Similarly, if you're looking to build a usable insurance front-end, why aren't you looking at people in the banking sector? Banking has gone through a massive change with mobile apps and open banking. Therefore, you can be sure that that’s where the specialism lies. Look across industries for relevant expertise.


Can’t see the forest for the trees?


Here’s another non-insurance example. A local council declared a climate emergency. It started pushing through environmental challenges to reduce its carbon footprint. After 4 years, it was significantly behind plan because it had been ticking high-level boxes to show it had made a difference. Yes, they got rid of things like plastic cups, but they didn’t touch the underlying problem — they were still collecting trash with a fleet of diesel trucks, still working in the same old way.

Therefore, when you tackle ESG, don't treat it as just a tick-box greenwash exercise to help you get into a vendor assessment or to show customers you’re doing “the right thing”. Compliance and environmental responsibility should be inherent and run like a shining thread throughout your business.


Find out more


Visit Luxoft on LinkedIn or contact Jeremy for more insurance insights. See how we’re helping to future-proof the insurance industry.



Jeremy Owenson , Digital Insurance Expert, Luxoft

Jeremy Owenson author linkedin

Digital Insurance Expert, Luxoft

During his 12 years with Zurich Insurance, Jeremy gained extensive market knowledge, from sales and the underwriting process to claims and even outsourcing (including offshore). Now, he’s concentrating on how technology can revolutionize the industry. Leveraging Luxoft’s leading position in Banking and Capital Markets, Jeremy is determined to bring fresh ideas and ML-driven underwriting to the insurance sector.