Staying relevant – How Can the Insurance Industry Adapt to the 21st Century?

The insurance sector has changed quite a bit over the past years; however, it is currently undertaking its biggest ever transformation – the shift towards a fully personalised approach towards the consumers, and usage-based insurance (UBI) as a prominent example of that shift.

Insurance has a reputation of being slow to change. Being burdened by legacy technology, the sector has lagged behind many other industries. InsurTech has helped change this by enabling insurers to transform the way they operate. Carriers understood that the path for their future growth is in adopting new technologies that will ensure they operate in a faster, dynamic and personalised manner. However, challenged by outdated tech and complex internal operations, insurers are limited in their ability to adapt to market changes and varying customer needs at the pace of the market.  In recent years, InsurTechs have built solutions that legacy insurers can seamlessly integrate to offer their own digital services driving rating, pricing and personalisation in real time.

This has all led to what Udi Ziv, CEO at Earnix, sees as the greatest shift in the industry. “The insurance industry is facing what I would say is the biggest transformation ever,” Ziv said. “The industry is looking to address the problem of how they can offer fully personalised and dynamic products to meet their customers’ expectations, regardless of whether the insurance customers are consumers or businesses. At the same time, they need to combat the threat of new players that are coming up with different ways of delivering insurance.”