What Is The Future Of Insurance?

by Angus MacCaull

When we gathered this summer in Cape Breton, we looked back on the journey of AA Munro since 1944. We remembered how our company grew from our founder Alcorn selling insurance policies in Whycocomagh to all of us supporting communities throughout the Maritimes.

But there’s a lot going on right now outside our communities. The market is hardening. Brokerages are consolidating. And both big players and small startups are trying to uberize insurance. They’re betting on developments in hardware and software to dramatically change the pricing and delivery of coverage.

“The core technologies that can disrupt the P&C insurance industry exist now,” says Rob Galbraith in his 2018 book, The End of Insurance As We Know It.

Cheap sensors share real-time data on individual behaviour. Artificial intelligence programs analyze that data to make decisions. And blockchains provide direct channels for securing contracts.

“It will take time, money, people, and ingenuity to translate these technologies into meaningful change in the industry,” says Galbraith.

What these developments point toward is a new system for establishing trust. That’s what’s eventually coming. As Galbraith notes elsewhere in his book, all of our current institutions, rules and practices exists for one main purpose: to build trust.

With 75 years in business, we are blessed with people’s trust. The AA Munro name means something to Maritimers. They call us. They know we care.

And with 75 years in business, we are blessed with each other’s trust. We’ve been there for each other as a team. We know we can handle the current stress.

What’s on my mind more and more is—how will we move into the future? The system of trust will change in the world around us, inviting a different kind of participation.

Can we find the energy to keep learning?