Insuranceciooutlook

Key Challenges in Insurance Operations

Insurance CIO Outlook | Friday, January 08, 2021

The remote working has already instigated a rise in hacking attempts by bad actors looking to exploit vulnerabilities for various purposes like obtaining customer data, steal financial information, or disrupt services.

FREMONT, CA: There is no denying that insurance is a complex business involving umpteen processes to administer existing policies, price new business, renew policies, sell new business, address customer inquiries, and process claims. The complexity is further intensified by the highly intricate interplay between insurers themselves and their external networks such as brokers and agents. As if this was not enough, the Coronavirus pandemic has presented a wide range of challenges for insurers to manage their operations as normal ways of working become severely affected.

This article is dedicated to some of the key insurance operations challenges:

Remote Working

One of the major changes COVID-19 has enabled across various industries is remote working. Consequently, most insurers are also working from home. Insurers are equipped with sufficient hardware - laptops and mobile devices - and remote connectivity systems are helping accomplish their tasks. Other than that, there is extensive use of video conferencing facilities. This huge shift did not come without challenges. In the beginning, insurers faced challenges to maintain steady cooperation and communication with brokers and clients. Nevertheless, with time the overall situation became better.

Many insurers have been seeking ways to increase their operational digital footprint and connectivity, with a lower reliance on people's physical co-locations.

Increasing Fraud Risks

The world has witnessed an increase in digital fraud and cybercrime in 2020. Therefore, the insurance industry has been striving to mitigate the potential for fraud. There has been significant growth in fraudulent claim attempts. For instance, travel claims allow travelers who have been turned away by travel agents or airlines for canceling travel to come to their insurer and fabricate an illness or other condition in an attempt to secure compensation.

The remote working has already instigated a rise in hacking attempts by bad actors looking to exploit vulnerabilities for various purposes like obtaining customer data, steal financial information, or disrupt services.

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