Modernizing insurance operations can make insurers’ pricing models agile, coordinate efforts across lines of business such as pricing, rating, and underwriting, and aid planning.
With inflation, cutthroat competition, and changing circumstances like climate change making pricing models out-of-date faster than ever, insurance companies across the globe must embrace innovation to stay ahead. If insurers continue to rely on existing technology, they could miss out on new opportunities. An additional challenge in the Israeli insurance market is that customers are being drawn from traditional carriers via new and different approaches offered by disruptive models.
Modernizing Insurance Operations, a global Earnix survey of nearly 300 executives from insurance carriers shows that carriers recognize modernization as critical to their business. The need for insurance operations modernizations was listed as one of the top five organizational priorities for 87 percent of surveyed insurance companies, with four out of five companies planning to update their infrastructure in the next two years. However, while modernization was ranked as a priority, insurers still struggle to implement. Nearly 90 percent of survey respondents said they have not fully developed and executed their operations modernization strategy. Additionally, none of the respondents had fully executed it.
Dror Pockard, Earnix Chief Strategy Officer, shares why modernization is necessary, its advantages, and the necessity of reprioritization to achieve success