Cape Town – Even though technological innovations are changing the way things are done in the insurance industry, these advancements are not likely to impact insurance premiums.
According to Mpumelelo Tyikwe, Managing Director at Alexander Forbes Insurance (AFI), in most cases insurers adopt a “wait-and-see” approach to make changes to rates given the history of claims experience.
“No technology is likely to impact insurance premiums suddenly,” he said. Technology has improved risk in the past and will continue to do so. “But don’t expect sudden rate changes because generally rates respond to experience measured over time,” he said.