Without a doubt, the global insurance industry is currently undergoing a major transformation, due in part to shifting market forces. A recently published white paper by Insurance Nexus highlights the four pressures — technology, the customer, data, and culture — facing carriers in this changing landscape and examines where carriers can find solutions for each. Insurance Nexus is the central hub for insurance executives to network, discuss, learn and shape the future of the insurance industry.
The white paper acknowledges that each specific pressure has its own challenges and individual solutions. New technology, like artificial intelligence and machine learning, gives insurers “ample opportunity to overspend and underdeliver” if they aren’t properly equipped to implement it into their existing procedures and technology. Customer attitudes are changing and expectations are now set by real-time information. New data can be incredibly helpful, but only if carriers have the capability to properly organize and digitize it. And lastly, at the root of enacting this change is operational management and a progressive company culture.
The white paper closes with the following: “All of these challenges can be met — and exceeded — if carriers engage a forward-thinking mindset and take a proactive, rather than defensive, approach.” Of course, this is easier said than done: it can be difficult to “introduce agile, iterative development and experiment and learn concepts into an organization that is inherently risk averse,” comments Roman Dumiak, Director of Technology Innovation at Allstate.
However, one solution helps to solve all these problems at once: engaging InsureTech companies. Forward-thinking InsureTech organizations utilize new technology, recognize the ever-changing needs of the customer, leverage emerging data that often goes overlooked, and embraces a fast-paced culture so unlike the traditional insurance industry. It’s no wonder that companies like Allstate have already paired with InsureTechs like Carpe Data to overhaul their current business models and embrace the ever-changing industry.
Download the exclusive white paper here.