Insurance Industry Statistics Reflecting the Ever-Evolving Landscape

With this feedback, it’s not surprising that survey participants believed that cybersecurity risks would have the most significant effect on insurance operations in the next two years. This was the top factor cited, ahead of other macroeconomic factors such as AI developments, climate change, and even inflation.

Many insurers may be more vulnerable than they need to be. Continued reliance on legacy systems may leave many of them at risk of a growing number of cyber threats. Replacing outdated IT infrastructure with more modern insurance technology can help address these security gaps, and help insurers stay one step ahead of cybercriminals.

2. Insurance Leaders Are Divided When It Comes to Workforce Dynamics

Insurance executives had a hard time agreeing on their top priority when it came to the workforce. Responses were fairly split from goals such as innovation, collaboration, efficiency, hiring, and retention.

Yet one trend is clear: attracting and retaining employees is still a top challenge, especially for larger organizations. On average, respondents gave this topic a rating of 7.78 out of 10, indicating that this will continue to be a top concern in 2024.

3. Insurers Are Now Looking for Certain Skills

To take an even closer look at hiring practices and wishlists, insurers are overwhelmingly looking for employees with strategic and dynamic pricing skills, especially related to AI.

15% of respondents reported this was the most important attribute they are looking for as they hire new candidates – almost double the next response (IT management at 9%). It is interesting to note that product executives place an even higher priority on strategic and dynamic pricing, with 21% of them saying that these skills have increased the most.

4. Changing Industry Regulations Affect New Technology Requirements and Customer Reactions

Clearly, new and evolving industry regulations will lead to new changes on the part of insurers. The research found that insurers believe the parts of their business most likely to be impacted include new requirements to use new tools, updates to how they interact with customers, and changes to sales delivery channels.

Interestingly, this perspective seems to indicate that insurers will look to technology to help. 28% of respondents indicated that they would focus on new technology investments to best respond to new dynamics and requirements caused by changing regulations.

5. AI Will Play a Big Role in the Near Future (If It’s Not Already)

Only 20% of insurers currently use AI technologies such as machine learning. Yet 47% stated that they have plans to implement AI strategies and technology in the next two years.

Specifically, more than 70% of insurers will be using generative AI technologies in the next two years or sooner as they look for new ways to increase efficiency, productivity, profitability, and customer experience.

Related: Why MGAs Are Facing an Insurance Capacity Crisis – and What Comes Next

Interested in Learning More?

These five insurance industry statistics are just a small representation of the hundreds of highlights, insights, and valuable research found in the research report.

To see them all – and understand how your company stands in comparison – download the complete report, “Insurance Operations in a Changing Industry,” today.