Editor’s Note:
Information in this article is based on material shared during the 2016 Annual Meeting session of the same name, which also included speakers Brian Grieff, MS, CPCU, AIM, of USAA, and Charlie Kingdollar, of GenRe.
“It is better to race with the machines rather than race against them.”
— Erik Brynjolfsson, director of the MIT Initiative on the Digital Economy
Our world is rapidly transforming along with astonishing exponential growth in technology.
Exponential growth is growth whose rate becomes ever more rapid in proportion to its total size. This phenomenon takes advantage of Moore’s Law, a computer term stating that “processor speeds, or overall processing power for computers, will double every two years.”1 This law has proven remarkably accurate for the past thirty or more years, with applications to processing speed, computer storage, pixels on a camera, and number of internet sites.
The exponential growth in technology has myriad applications to the personal lines insurance arena. It is the driving and inexorable force behind the growth in smart, or intelligent, homes and autonomous or semiautonomous cars. This lightning-fast technology is racing ahead, with the legal and insurance realms struggling to keep up.
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