Insuranceciooutlook

Major Challenges for Insures to Overcome

By Insurance CIO Outlook | Tuesday, October 13, 2020

Insurtech has created ripples across the insurance industry by taking advantage of data analysis and other latest technologies such as activity trackers on wearables or GPS car tracking.

Fremont, CA: Embracing digital transformation is easier said than done. Industries across the globe are striving to reap the benefits of technologies. Everyone expects technology to improve their competitiveness as well as customer loyalty while reducing cost and accelerating growth. In order to achieve all of that, insurers need to overcome multiple challenges.

Let us look at some major challenges for insurers:

Failing to Adapt to the New Ways

Top 10 Insurance Agency Management Consulting/ Services Companies - 2020Insurtech has created ripples across the insurance industry by taking advantage of data analysis and other latest technologies such as activity trackers on wearables or GPS car tracking. Insurtech has brought transformational changes in the market with new solutions and better experiences. Although startup activity has slowed, insurtech continues to play a pivotal role in shaping the industry. Insurtech companies lack experience, which has created challenges for traditional insurers. This experience gap leads to potential obstacles when it comes to adapt to the new ways of engaging customers, agents, partners, and policyholders.

Providing Seamless Experiences

Many insurance carriers work across multiple jurisdictions demanding seamless experiences yet different regulatory rules for insurers to adapt their procedures and policies to be compliant everywhere. As regulations get stricter, the challenge for insurance companies operating across multiple countries is to be capable of customizing and adapt their user experiences and businesses to abide by different state or federal policies.

Ensuring Connected Digital Ecosystem

With a continuous increase in competition, many larger insurers are expanding their business and service offerings by including other companies into their ecosystem. There are few insurances that adjust the rate on the basis of the number of miles one drives, which enables them to broaden their market to new customers and diversify their services and product portfolio. On the other hand, it makes their businesses more complicated.

See also: Top Digital Transformation Solution Companies

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