In a market full of rapidly changing risks and evolving customer demand, how can insurers pursue sustainable business growth?
Watch Forrester Principal Analyst Ellen Carney's conversation with Vizuri SVP Joe Dickman on the state of commercial insurance and why it’s time to rethink legacy underwriting.
Digital consumers want faster, more streamlined experiences.
The Internet has made consumers impatient— consumers expect to get what they want in real time. Consumers’ expectations are set by the experiences they have in the digital space. Think of instant access to any information via Google and delivery of almost anything to your door in two days with Amazon Prime.
The commercial insurance industry is not immune to these customer demands for faster, more responsive service. The first Insurtech disruptors on the market met these demands and have, over time, established their reputations as leaders. There is no doubt today: this type of disruption is a competitive advantage.
For that reason, conversations around insurance innovation center around the desire for answers: how should insurance companies think about what business will be like in 10-15 years? What will customer demand look like? What will be some new kinds of risk that need to be considered? Who are future competitors? These questions spark conversations about modernization, particularly to stay abreast as the insurance industry continues to be disrupted.
Don’t be a boiled frog: Innovate and integrate or adapt and stagnate.
66% of tech budgets are spent just to keep the lights on and run the business. This cannot power the innovation that will help an insurance company endure a future recession. This is also a marker that technical debt incurred by insurers has grown to equally unsustainable levels. To break out onto a more sustainable path, consider the innovations we discuss in our webinar that reflect a commitment to going beyond just keeping the lights on.
To open the floodgates for innovation, the investment in knowledge management is key. Knowledge management facilitates informed investments that work to produce business value. Avoid aimless adaptation disguised as modernization.
Adoption of microservices
Microservices enable function-based computing that can react and change business processes quickly. This agility is what will allow insurers to weather a future recession since it addresses market share and sustainability, not just revenue.
Tackling the burden caused by legacy technology infrastructure
As mentioned above, consumers expect fast service, fast policy turnaround, and on-demand fulfillment. Insurers must escape from under the weight of legacy technologies that cannot support them as they strive to meet this demand. To address this burden, incremental modernization based on a strategy of integration, not just adaptation, will help make insurers’ modernization efforts sustainable.
Watch the webinar for the full rundown on insurance innovation.
Hear the full story about how insurers can move on from technical debt and legacy technologies via targeted innovation by watching our on-demand webinar.