3 trends driving digital transformation in insurance in 2022

As the world settles into 2022, cloud-based InsurTech Novidea has outlined the three major trends it expects to drive digital transformation this year.

The first trend Novidea outlined was hybrid working models. Over the past couple of years people have got used to working from home and employees want to continue this freedom.

Accenture’s Future of Work Study 2021 found that 83% of global workers prefer a hybrid model where they can work remotely at least 25% of the time. Furthermore, 63% high-revenue growth companies have enabled hybrid working models.

Novidea believes that the repeated lockdowns have proved the effectiveness of remote working. However, some firms are concerned the home working momentum will be maintained.

Due to this, they are looking for SLA tracking and performance analytics to ensure optimum results from staff. It also said many are looking to embed broking on the move’, where staff can work from anywhere by accessing the data they need from any location 24//7.

The second big trend of 2022, according to Novidea, is an increased customer demand for digital services. In a statement, Novidea explained the past couple of years have accelerated customer expectations for seamless and personalised digital interactions across mobile channels.

This rise has led to the development of self-service digital portals where customers can manage their account, buy products and transition away from legacy systems to cloud-based insurance platforms.

The thirds and final major trend of 2022 will be the increasing number of mergers and acquisitions. It stated that following rising competitive pressures, M&As among insurance agents and brokers have reached record highs.

According to a report from OPTIS Partners, an insurance consulting firm, agency M&A deals in the US increased by 20% year-over-over in 2020 and reached new heights in 2021. Novidea believes this trend will not stop and as competitive pressures continue to rise, so will the level of M&A deals.

Novidea CEO Roi Agababa said, “With these trends driving further digitalisation of the insurance market, we are seeing an increasing move away from legacy systems and towards cloud-based insurance platforms.

“Cloud-based platforms allow secure 24/7 access to data from any location to facilitate broking on the move. They are also essential for powering the kind of self-service platforms that brokers, agents, and MGAs increasingly seek to develop. At the same time, full end-to-end cloud-based platforms help to fuel successful mergers and acquisitions, making it simpler to integrate disparate businesses, provide reporting and transparency and reach a positive ROI much faster.”

Novidea is a global provider of born-on-the-cloud, data-driven insurance service that gives brokers, agents and MGAs the ability to manage the entire customer journey. Its platform boasts a 360-degree view of all management information, an integrated front and back-office, and automated workflows.

Customers have instant access to all customer data with actionable intelligence from any device, helping them make more informed decisions and provide better value.

Late last year, the InsurTech company joined the ACORD Solutions Group (ASG) Licensed Integrator Partner program to help it grow its global presence.

Earlier this week, Novidea named its new CMO to bolster its market and brand presence.

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