How Digitalisation is Transforming the European Insurance Industry?

By Insurance CIO Outlook | Wednesday, December 11, 2019

Digitalisation is a promising advancement that is transforming the European insurance sector without disrupting the legacy systems.

FREMONT, CA: Industries across Europe are under the spell of transformation. The insurance industry is one of the many sectors in Europe that have transformed beyond recognition. However, there are various underlying challenges in the European insurance sector that are inherently shaping technological transformations. For instance, underwriting tools and processes are firmly established, and the leaders are open to innovations only within the walls of the legacy insurance systems and frameworks. Digitalisation is one such technology that promises to transform the insurance sector in Europe without disrupting the existing sets of legacy frameworks.

Digitalisation has immense potential for insurance firms in the European market. The companies that are investing in incorporating digitalisation throughout its legacy processes will benefit the most in the long run. Digitalisation has the potential to impact various aspects of the insurance sector, such as underwriting, customer service, and claims management. As per an analysis carried out on a P&C insurer in Germany, the incorporation of digitalisation resulted in an increase in the revenue by up to 28 per cent in a time frame of five years.

Coupled with other technologies such as artificial intelligence (AI), digitalisation can benefit the underwriting process. The technologies can result in better decision-making and faster processing of insurance claims leading to higher gains. The impact of digitalisation will also enable the underwriters and insurance leaders to access transparent data across the systems present in the firm. Thus, human-related errors can be largely eliminated, resulting from rewriting of claims and other insurance data.

European insurance firms are gaining significantly from the growing prowess of digitalisation. Digitalisation is transforming the role of insurance from the pure risk protection sector towards predicting and eliminating risks. European firms are adopting the latest technologies in terms of the way they sell policies, and the role of digitalisation cannot be undermined in this aspect. Insurance firms are getting insurance products underwritten without the involvement of manual efforts.

While digitalisation has streamlined the insurance processes across Europe, it is also enabling the firms to come up with new insurance policies that suit the expectations of the millennial.

See also: Top Insurance Technology Solution Companies

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