The latest from RDT, whose survey suggests that there is still some work to do on legacy systems across the insurance sector;
Leveraging flexible and agile technology is crucial for insurers to provide customers with the best products and services. The potential benefits are immense, from improving efficiency in claims and simplifying customer journeys to offering more relevant products with more accurate pricing.
Past transformation projects have shown that updating the insurer platforms can be labour-intensive and costly. And today insurers face the additional challenge of a difficult economy in the rapid evolution towards digital-first, real-time products. It’s not enough to adopt digital tools; insurers need to fully integrate digital methodologies into their operations.
Despite challenges, insurers are making notable progress. More than half of industry participants (54%) are prioritising the implementation of low-code interfaces to automate customer journeys, while only a fifth (19%) are working on replacing legacy systems entirely. Additionally, over a third (36%) of insurers surveyed reported an increase in technology investment over the past year.
However, the RDT Tech Poll reveals that a lack of automation and digital readiness is significantly affecting sector growth. Concerns about the pace and effectiveness of digital transformation within insurance remain prevalent among insurers and MGAs. The survey indicates that most insurers view the sector as lagging in digitalisation, with nearly a third (31%) of tech professionals at insurers and MGAs rating the current state of digital adoption as either poor or very poor. Only 3% consider the industry’s digital transformation as excellent.
Joe O’Connor, Deputy CEO of RDT, stated:
“We are encouraged by the shift among many from project-based transformations to continuous updates using low-code interfaces. Insurers are now integrating new methodologies and practices to cultivate a culture of continuous learning and innovation. However, it is essential for insurers to begin by asking the right questions about how to add more value for customers and enhance the claims experience. The emphasis should be on leveraging automation and data to drive valuable outcomes – the key is to be customer-focused, not just tech-focused.”
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