b'TechnologyTechnology TransactionsIntroduction2020 was a year of rapid digital transformation in the insurance industry. The pandemic dramatically altered the way people worked and lived, giving increased importance and urgency to long-running trends in data, digital, outsourcing and software transactions. As insurers and producers sought to gain competitive advantages in a challenging marketplace, prominent trends included an increased interest in managed services agreements, rapid adoption of cloud and as a Service technologies, the use of big data and data monetization concepts, a rise in collaboration deals between incumbent insurers and digitally-native insurtech companies, and continued growth in the use of AI. Managed Services With significant disruptions to existing employment arrangements and business models, insurers and producers took renewed interest in managed services, including as IT outsourc-ing, business process outsourcing and offshoring. Managed services can replace the fixed overhead costs of employees with variable cost services and streamline back office opera-tions. The need to control costs and improve financial performance was an obvious driver of increased interest; however, the pandemic also demonstrated that insurers and producers have the ability to perform many critical functions remotely that they formerly believe must be under one roof. With employees working at home, insurers and producers were forced to adapt to the new normal. Through the reexamination and adjustment of critical business processes to make them work in a remote environment, companies removed a massive barrier to the outsourcing of those key processes. The pandemic also highlighted the value of a resilient supply chain. Beyond having well-defined business continuity and disaster recovery plans, insurers and producers saw value in having contractual rights to exercise. With some suppliers forced to choose among their customers, companies saw business value where they had secured a firm commitment to deliver to acceptable standards at a reasonable price despite the pandemic. There is likely to be an increased focus on contract terms moving forward, including contract terms protecting against unlikely events. 98GLOBAL INSURANCE INDUSTRY | YEAR IN REVIEW2020'