8/26/2021 – According to a survey of industry experts, cloud computing and automation are among the most important technologies for the future of insurance. Distribution is still generally seen as a “personal” matter; however, some respondents assume that their sales will be at least 70 percent automated in the future.
The consulting company has around 80 managers and professionals from the insurance industry in Europe, the USA, Japan and other markets Sollers Consulting In 2020 and 2021 asked about the “future of insurance”. It has now published its results.
Among other things, it was about the topic of automation. According to Sollers, their greatest potential is seen in the areas of reporting, policy management, back-office processes and claims processing.
Sales still domain of the “personal”
According to these findings, sales, on the other hand, are still primarily seen as a personal interaction. However, every third person is convinced that sales will be 70 percent or more automated in the next ten years.
“Banks and insurers are making great efforts to digitize insurance sales,” says Micha? Trochimczuk, Managing Partner and Co-Founder of Sollers Consulting. “To be successful, however, they need to implement flexible insurance platforms that enable them to react quickly to changing markets.”
“Aggregators have also changed the insurance industry from a technical point of view,” adds Marcin Pluta, Managing Partner and co-founder of Sollers Consulting.
“Insurers have been forced to develop solutions to serve price comparison websites very quickly. Speed and price have become more important in the insurance business. This is still a challenge for insurers. “
To a cloudy future
- Sollers Report on the Future of Insurance
(Cover; Source: Sollers) Click image to enlarge.
Another result of the survey, according to Sollers, is that insurers are paying increasing attention to their core systems, “which in many cases lag behind technological developments”.
To a large extent, cloud computing is seen as an important technology. Core systems “on cloud” achieve higher values with the respondents than those “on premise”.
“Insurance professionals know that the cloud provides greater business flexibility and operational effectiveness,” said Pluta.
Both are becoming “increasingly important” in the era of integrated and intelligent ecosystems.
Technologies considered particularly important
After cloud computing and process automation, artificial intelligence and machine learning as well as open interfaces also rank high on the list of the most important technologies.
Behind them – in that order – are modular insurance core systems, the Internet of Things, telematics products and, with a comparatively greater distance, blockchain technology.
Value of data “only used in very isolated areas”
The speed of digitization has not yet reached its limits, concludes Sollers. There are “clear signs” of this.
While the insurance industry talks a lot about data-driven business models, the value of data is only used in very isolated areas. 5G will increase the amount of data available. It is a challenge for insurers to use them.
Sectors such as gastronomy, tourism and the media have been changed significantly by the Internet. “The products haven’t changed much, but the way they’re offered and sold is completely different,” says Trochimczuk.
He is “convinced that the same will happen in the insurance industry. It will go even further ”.
To download
The full, 26-page report “The Future of Insurance” can from a Sollers website can be downloaded as a PDF document.
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