The CEO of underwriter Rising Edge has said that the future will continue to be driven by technology and data but there needs to be an understanding that innovation cannot lead to isolation.

Philippe Gouraud, chief executive officer of Rising Edge told Emerging Risks that technology was creating new opportunities for insurers.

His comments came after his company announced it had a agreed a deal for the sale  of Rising Edge D&O Ltd, its management liability business, to K2 International.

He said the sale confirms the strategic orientation by Rising Edge to concentrate  resources and expertise on developing new lines of insurance businesses, with a focus on differentiating its offering through technology and data.

Gouraud explained the transaction will enable the company to accelerate its growth and innovation in specialty insurance lines, while ensuring that the successful D&O business it has  built over recent years continues to thrive under a new stewardship that will take it  to the next level.

“This transaction reflects what Rising Edge is all about: transforming talented  underwriters with an entrepreneurial and innovative mindset into successful and valuable businesses.” He added. “While D&O has been a core part of our portfolio, this sale gives us  significant financial resources to accelerate the development of new lines of  business and market segments, with advanced technological solutions, where we  can deliver the greatest value to our capacity providers, and to our brokers and their  clients.”

Gouraud added the future will be defined by the ability of the industry to access and analyse data more effectively.

“Leveraging the use of data and technology will be key,” he said. “We are seeing technology deliver new predictive modelling capabilities and there are new capabilities that will allow us to deliver better analytics given the data we can access. We are all excited at the opportunities.”

Gouraud  continued that the opportunities will create new horizons for the industry but cautioned that moving too fast and in isolation brings with it risks.

“The data was always there,” he added. “What has changed is the ability to deliver insight which can support underwriting decisions. In the  past the data was not connected in a way which allowed it to be actionable.

“You cannot innovate too fast. If you do you will lose people. You need to innovate in a collaborative way. The opportunities need to be structured to offer solutions to be delivered in a better way which will allow data to create more accurate insight and with it price.

“No one is big enough to transform the market. It needs to work for everyone. It is a case of understanding how to innovate but ensure you are not isolated. We want to be on the edge but not alone.”