To say that the insurance industry is currently changing would be vastly understating the impact of so many new developments and market conditions. Insurance carriers today are confronted by unprecedented change, coming all at once and from a wide range of factors, reads the “Insurance Operations in a Changing Industry” report issued by Earnix, a global provider of mission-critical, intelligent solutions that are designed to transform how global Insurers and Banks are run.
With continued inflation, supply chain issues, post-pandemic workforce dynamics, climate change, new and more aggressive competition, indecision about emerging technologies, and so much more, insurance carriers are facing more challenges than ever, and they’re coming all at once.
To help insurance executives understand new changes in the insurance industry and how insurers can successfully respond, Earnix partnered with the Market Strategy Group, LLC to conduct a comprehensive independent research survey to uncover all these issues and more.
The report summarizes key findings from the survey to show how other insurers are thinking about and reacting to so much change. It also highlights real opportunities any insurer can put into practice now, not just to survive this period of upheaval but to truly thrive.
Among the factors that are causing insurance industry to change, Earnis’s report is listing:
- Economic uncertainty;
- Ever-evolving customer expectations;
- Technology-driven disruptions;
- Intense cost and competitive pressures;
- Climate change concerns;
- New regulatory implications.
- In a rapidly changing environment, insurance executives must increasingly spread their attention across many operational areas to effectively harness the strength and speed of change. 35% of C-suite executives believe that macroeconomic factors (e.g., inflation, risk of recession, rising interest rates, and low GWP growth) are the most significant trends driving change.
- Many insurers report that other trends, such as the threat of cyberattacks and climate change, are also major factors.
- Post-pandemic workforce dynamics are likely here to stay. This will force insurers to rethink remote work policies and ways to enable employees to focus on more engaging, strategic work in their quest to attract and retain top talent.
- Insurance carriers are now focused on prioritizing profitability over growth, especially when it comes to fostering innovation in their firms. However, many executives report that their current IT infrastructure presents the biggest obstacle to innovation.
- Personalization continues to be a clear priority for insurance leaders, although just 7% say that they have fully executed their company’s personalization strategy.
- Emerging technologies such as artificial intelligence and machine learning are crucial to implement predictive modelling, dynamic pricing, and other critical use cases.
Read the full report here.