UK Insurer Says Insurance Industry “In the Stone Age”

The insurance industry is “generally in the stone age,” and partnerships with technology companies are the way forward, the chief executive officer of the U.K.’s second largest insurer told Bloomberg.

Aviva Plc, is doing just that, working with Tesla on how to insure driverless vehicles, according to the company’s CEO, Mark Wilson. Aviva is also looking into artificial intelligence and big data, he said.

“The new future is partnerships,” Wilson said. “You need those skill sets, you need to blend them together.”

Aviva last year teamed up with Hillhouse Capital Management and Tencent Holdings Ltd. to develop a Hong Kong company focused on digital insurance. In his Bloomberg interview, Wilson said Aviva’s dividend will probably grow at a double-digit rate “for the foreseeable future.

“In the digital space we can produce products 30 percent cheaper than we could ever do it before,” Wilson said.

Aviva says it provides around 31 million customers worldwide with insurance, savings and investment products. The company is one of Europe’s leading providers of life and general insurance. It combines strong life insurance, general insurance and asset management businesses under one powerful brand.

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