Sure, the insurance technology leader that unlocks the potential of digital insurance, has released the 2024 State of Digital Insurance Report, revealing widespread dissatisfaction with a core part of the insurance ecosystem, legacy rate service organizations (RSOs). Hundreds of insurance industry decision-makers were surveyed to dive deeper into the current state of the digital insurance landscape, as well as the challenges of getting insurance programs off the ground and launching them digitally.
As the embedded insurance market is expected to exceed $70 billion by 2030, this new research reveals interesting insights about the tools that insurance professionals are using to meet this demand, as well as the difficulties posed by legacy RSOs in the process.
High cost, high pain
As consumers seek more seamless experiences to purchase insurance in a digital world, many carriers and brands are looking to keep pace by developing digital insurance programs from the ground up. Rate service organizations are a necessary step in building insurance programs, providing rate, rule, and form filings, as well as other services, such as loss analytics. Sure’s new research report found that while there is widespread use of RSOs and their services, 71% of respondents feel that legacy RSOs require a massive amount of effort to get insurance programs off the ground, maintain them, and launch them digitally. Ultimately, these shortcomings hurt consumers with limited options and coverage that’s not keeping pace with the market.
Not only are the current options for launching insurance programs time-intensive and massively complex, they’re also highly expensive. 75% of respondents noted that their companies spend at least $1 million annually to execute these programs — and 31% report spending $10 million or more. Despite all of this investment of financial resources and effort, only 12% of respondents are very satisfied with legacy RSOs. Further, when asked what they are least satisfied with, respondents cited effort (46%) and flexibility (31%) despite both also being their top two priorities.
Meet the future of insurance
For over a decade, Sure has launched $1b+ digital insurance programs with its partners and has seen firsthand the many pain points of combining legacy insurance products from RSOs with modern technology. Sure recently launched Anywhere Insurance to meet these challenges head-on by radically rethinking how to launch new insurance programs and bring them to market digitally.
Through years of development, Anywhere packages up a modern and modular suite of pre-configured insurance product filings paired with Sure’s best-in-class-technology platform. The combined solution goes beyond the imaginations of what insurance professionals have had to work with until now. The result is a time to market that is 800% faster; a scalable and cost effective solution for all; superior technology with minimal IT investments, short implementation timelines, and reduced servicing touchpoints; and a better customer experience that helps to close the protection gap in the market.
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