The insurance industry is at a crucial inflection point, and 2022 is the year for carriers to address the connection between business processes and the technology. Deployment of dynamic pricing and personalized solutions is the key. Udi Ziv shares best practices for embracing analytics, automation, and agile technologies to respond swiftly to market changes and quickly and efficiently develop the right insurance offers to meet customers’ evolving needs.
While the insurance market has historically been very stable, with a tolerance for only gradual change, this is no longer the case. Changes in technology, consumer behavior, and claims cost demand faster evolution. It’s clear that the insurance industry is at a crucial inflection point.
Even though widespread adoption of Usage Based-Insurance (UBI) was not quickly realized soon after its introduction decades ago in the 1990s, it was the first big shift in the industry. When a mature and famously conservative market starts to undergo change, the instinct is to hold tight, not march toward new technologies or processes.
After many months of remote working and quarantining, consumers started questioning the need to pay the same amount for car insurance when they were not driving nearly as often. When insurers started seeking ways to satisfy the changing demands of consumers, it resulted in an ineffective and incremental re-engineering of how the insurance sector already does business.
With that now in place, 2022 is the year for carriers to address the connection between business processes and the technology. It doesn’t matter how smart, hardworking, and innovative a team of actuaries, underwriters, or data scientists is if they are challenged with poor processes or legacy technology that can’t keep up with market changes and customer demands. Deployment of dynamic pricing and personalized solutions is the key.