Insurance sector: On brink of tech-related change

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The insurance sector is on the brink of a major technology-driven change, according to a research report on insurance and technology by the Morgan Stanley and Boston Consulting Group (BCG). The report says technology-driven change creates exciting opportunities for insurers keen to embrace it, but poses significant risks for laggards. The research report, 'Insurance and Technology: Evolution and Revolution in a Digital World', estimates technology could reduce the combined ratio as much as 21 per cent. Compared to a baseline insurer with a combined ratio of 99 per cent, the combined ratio of a digitally born insurer will be 78-82 per cent, it says.