As property/casualty insurers invest more and more in company-wide innovation, they will ultimately glean greater insight into not only best practices, but also lessons learned that truly move the needle. This was a central discussion topic at InsureTech Connect 2019, which attracts the largest gathering of insurance leaders to discuss change and growth in the industry.
Conversations moved from theoretical discussions to practical implications of technology in insurance and how those practical changes can add value for the end customer. BuildFax identified a few key themes that best illustrate how innovation has progressed in the property/casualty insurance space over the past year.
Carriers are Redirecting Investment Dollars to Streamline the User Experience
While core systems continue to dominate “run and grow” spending, digital projects have begun to match or exceed insurer transformation efforts. Approximately 20 percent of insurers’ IT budgets are devoted to digital strategies, according to Novarica. For property/casualty insurance, the focus is on externalizable APIs and pre-fill data in distribution.
In underwriting, specifically, carriers prioritize machine learning and channel collaboration. It is increasingly important for carriers to address legacy systems, transforming them into agile, digital infrastructures that leverage data and analytics-focused partners for build out. These strategies will ultimately bring the customer experience together in a single value chain, from underwriting to claims and beyond.
Commercial Lines Insurance is the Last Frontier in Insurance Innovation
Following the InsurTech revolution in auto and personal lines, innovation makes its way to commercial lines. This often means commercial-focused carriers are doubling down on their independent agent distribution channel. Insurers are starting to take a more data-driven approach to the tech capabilities they provide to agents, including modern portals and enhanced agent-carrier connectivity solutions. One challenge to this evolution lies in digital fragmentation. However, incumbents cite partnerships with data-savvy companies as a way to help overcome the barriers they face in digital innovation efforts.
The Workforce is a Critical Component in Operationalizing the Digital Transformation
A skills gap is developing as incumbents begin to innovate. Given new and evolving capabilities, insurers are rethinking the relationship between information, people, and processes. As a first step, carriers have increased their focus on workforce development. In addition to investing in the workforce and acquiring machine learning expertise, carriers who partner with data and analytics providers can help relieve their staff to focus on other complex problems or customer services.
For more insight into how BuildFax can provide your company with the next step in their innovation journey, contact us today.