The insurance industry has undergone substantial transformation in recent years, with the emergence of new technologies, changing customer demands, and the impacts of economic instability. Keeping pace with the rapidly evolving industry landscape has become a top priority for insurers who wish to remain competitive in the marketplace. In this article, we will examine the major trends shaping the insurance industry and explore how insurers can harness these trends for operational success in 2023.
- Coverage that drives operational and personal resilience
The “typical” workplace has well and truly shifted since the pandemic, and underwriters need to be ready to assess and manage the new risks that remote and hybrid working environments bring. The home environment has not typically been accounted for from an operations or risk assessment perspective before.
Underwriting agencies need to understand the challenges at play to ensure their clients are adequately covered. While company productivity has commonly benefited from the introduction of new technology, it also brings new risks to the forefront. Whether it’s unsafe storage of confidential documents, phishing attacks or ransomware, your client’s coverage must cater to the entire picture of technology-related risks.
Learn how to address this trend here.
- Delivering digital value
In today’s current climate, there isn’t a single industry out there that isn’t in the midst of a digital transformation. There is competitive power in an underwriting agent who is skilled in navigating this ever-changing environment.
As businesses continue to move into this digital era, new technologies, business proceedings and methods of operations are to be expected. However, amid these technological changes is a scope of risks that are yet to be identified.
Although advancements in artificial intelligence (AI), robotic process automation and other cognitive computing tools provide the claimant with the liberty to self-serve, this comes with increased room for error. Amongst insurers and brokers, there is mutual agreement that the capability of underwriting agencies to meticulously identify and assess risks is essential in the years to come. The technology may be self-sufficient, but underwriters can still position themselves as the ones who keep risks at bay, and the value of a human touchpoint must not be understated in the claim lifecycle.
To learn more about navigating the digital era, read our full article here.
- Tackling the talent gap
Widespread labour and supply shortages in Australia are creating new challenges for underwriters, as increased competition for skilled workers and materials continues to run rampant. Underwriters face new challenges within the claim ecosystem, such as:
- Transportation bottlenecks and the rising costs of getting materials from “A to B”.
- Skilled staff shortages and their impact on business to operate at full capacity.
At GB, we understand these challenges can create opportunities, read how we’re tackling the talent gap in the insurance industry in this article with our CEO, Pete Nicholson.
- Partner with technology
The “Amazon effect” on lead times, with claimants requesting and expecting solutions here and now, will continue to drive the need for underwriters to partner with technology. As most insurers have capitalised on accelerating economic recovery by investing in additional technology, underwriting agencies will need to prioritise being nimbler, agile and customer-focused in the new year.
Underwriters can increase their use of cloud and artificial intelligence (AI) in the claims lifecycle to harvest the functionality of cloud-based platforms and AI and thrive in the dynamic digital era. Superior customer service combined with the effective use of technology can transform the journey for your claimants, and your agency’s reputation.
- Transform the cost curve
With increased capital constraints and pressure to perform, investing in the right infrastructure to support your business into the future can be a challenging decision. There are three key investments we predict underwriters will take in 2023 to transform their cost curve:
- An agile predictive analytics platform – these platforms can offer underwriters a single point of entry to assess and analyse exposures, environmental factors and provide the insights you need to future-proof you and your client’s business.
- Universal virtual access – with customers expecting more flexibility, access and responsiveness at every turn we recommend investing in tools and process that support workflow connectivity and cloud-based operations to maintain your reputation and customer retention.
- Trusting the right architecture- with the lines between private and privacy continuing to blur, underwriting agencies must effectively manage risk and make use of the complex data available to them. The right architecture will build trust between your agency and your client, ensuring you can predict and prevent risks and position yourself as a core necessity in any client’s toolkit.
Learn more about how we can help you transform the cost curve here.
At GB, we can help you navigate the challenges and opportunities that lie ahead for a successful 2023 and take your business further, connect with us today to find out how.