Insurers have prioritised modernisation, but are struggling with implementation, according to a study from Earnix.
Its study found that 87% of insurance companies have listed operations modernisation as one of its top five priorities. Four out of five companies are planning to modernise their infrastructure in the next two years.
In contrast, around 90% of respondents said they have not fully developed and executed their operations modernisation strategy
Earnix completed a survey of around 300 executives from insurance carriers focused on perceptions, priorities, and plans related to new technology adoption.
Executives see the importance for insurance operations modernisation. On a 10-point scale, the current need for this was ranked at 7.6, but this is expected to reach 8 in the next 12 months.
The biggest areas in need of automation were dynamic pricing, fraud analytics, and personalised add-on offerings. Earnix’s report claims that investment will increase most in product personalisation and telematics-based products.
As for internal processes that would benefit from modernisation, rating, pricing and product personalisation were ranked at the top.
Additionally, the report found that advanced simulation, real time monitoring, AI with machine learning at the point of interaction, and automation are all key for carriers to provide the personalised offers that their customers crave.
Earnix chief strategy officer Dror Pockard said, “Carriers have realised that they must prioritise insurance operations modernisation.
“Technology partners with interoperable, connected, and easy to deploy solutions that offer fast return on investment can leverage carriers’ existing investment. Adopting new technology is critical to help insurers to improve customer experience. The time for modernisation is now; any delay will harm carriers’ ability to achieve their business goals.”
In other Earnix news, the company recently added two insurance technology leaders to its team. Adrian Coupland, based in London, and US-based Edwin Amerman will work in concert to execute the company’s global sales and business development strategies.
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