Ventiv Technology

that AI will drive automation beyond warehousing and assembly lines into the workforce at large." Clearly, there are many ways to look at digitization and the organization of today and tomorrow. Yet, it's clear to us that the practice of risk and claims management is at something of a crossroads when it comes to digitization. What direction should risk and insurance teams choose? We think the evidence shows that the benefits of digitization are here now for risk and claims teams to reap. Our experience shows there is a structured way to embrace digitization that delivers strategic value in a focused way. We urge risk and claims leaders to accelerate their digitization initiatives and the resulting cost and efficiency benefits. IS RESISTANCE TO DIGITIZATION FUTILE? Let's consider the term digitization. Gartner defines digitization as "the process of changing from analog to digital form, also known as digital enablement. Said another way, digitization takes an analog process and changes it to a digital form without any different-in-kind changes to the process itself." The Gartner definition strikes us as accurate and neutral— emphasizing neither the threats nor the upsides. Yet, even a cursory reading of recent history suggests there's an inevitability in digitization. The rapid, widespread growth of the insurtech industry certainly suggests digitization is all but a foregone conclusion. The insurtech insurgency is a living, breathing manifestation of digitization. And what, exactly, is "insurtech"? As McKinsey defines it, "'Insurtechs' are technology- led companies that enter the insurance sector, taking advantage of new technologies to provide coverage to a more digitally savvy customer base…. Insurtechs seek to apply technology to all parts of the insurance value chain in the pursuit of dramatically better results." Insurtech began with a focus on personal lines and serving retail clientele, but it's now moving inexorably into commercial insurance. The insurtech movement is even making its way into the world of risk and insurance management. We think it would be unwise to dismiss insurtech as a carrier-side phenomenon with little applicability to the buyer's side. According to Risk Management magazine, the innovations borne of the insurtech movement "have real implications for corporate risk managers…. Many of the same technology solutions designed for insurance can be used by risk managers to better evaluate corporate exposures, determine how much risk the business can bear on its own balance sheet, and decide how best to transfer remaining risk." The insurtech insurgency is a living, breathing manifestation of digitization. VENTIV TECHNOLOGY 3SIXTY ° | 5

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