TECHNOLOGY is one area of business and the economy that regularly delivers products
and services at continually lower costs to the buyer. Recall the old joke about the comparison of technology to automobiles which went something like this: “If automotive technology had kept pace with Silicon Valley, motorists would buy a V-32 engine that goes 10,000 MPH or a 30 pound car that gets 1,000 miles to the gallon—either one at a sticker price of less than $50.00” (Snopes.com).
Like all jokes there is usually an element of truth to the statement. The simple truth is that the costs of computing and storing data has dramatically declined every year since even before the personal computer hit the market. Moore’s Law, named after Gordon Moore, one of the founders of Intel, noted that the computing power of a computer doubled every 2 years. That forecast made by Moore was his original assessment in 1965 and has proven to be quite accurate, as seen with the average person having a Smart Phone, a Tablet computer, and a laptop, all with computing power that far exceeds what was available as recently as 2010.
The insurance industry has welcomed the advancements of technology and continually are among the leading buyers of technology. That focus on technology is necessary, due to the rapidly changing business and consumer insurance marketplace, and does cause concern in the executive ranks. Insurance CEOs recognize the importance of technology in their business but don’t want to be known as a technology company that happens to sell insurance. They would much rather be insurance companies that effectively use technology to help the company grow and meet strategic objectives.