Insurers prove laggards in technology race

By Carolyn Cohn LONDON (Reuters) - At a time the financial sector is racing to embrace digital technology to boost sales and drive profits, the traditionally staid insurance industry is in danger of falling behind. Some insurers are using developments such as telematics, or social media sources, to increase the amount of information they have about customers to reduce claims and theoretically make insurance cheaper for all. Telematics uses aircraft-style "black boxes" that have been in Formula One racing cars for years to collect data about how policyholders drive their cars, so they can be rewarded with lower insurance premiums if they adopt a cautious style. The reluctance to roll out technology with the same enthusiasm as banks and some investment managers is partly cultural, partly financial.



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