Digital Technology Trends in the Insurance Industry in 2023
There are always multiple factors influencing trends in the insurance industry, including socio and geopolitical developments along with new government policies and regulations. There is also the current inflation and threat of recession, as well as the rising numbers of natural disasters attributed to climate change.
Throughout all these changes and developments, insurance companies must find ways to continue offering protection to people and businesses despite the mounting challenges. One of the ways in which the insurance industry can rise to these challenges is through digital technology, with new developments continuously unlocking new opportunities and potential.
Here we take a look at a couple of the digital technology trends emerging in 2023 that insurance companies are adopting to improve their performances.
Digitisation of Core Operations
The insurance industry is currently witnessing an upward curve in the digitisation of core operations. The popularity of such digitisation is due to the multiple benefits it provides, including improvements to the customer journey and the ability to engage in larger digital ecosystems (more on this latter point below).
The digitisation of core operations also enables insurance company workers to reduce their costs in the long-run, keeping them cost-competitive even during tumultuous times.
While digital engagement and the cost-effectiveness of digitisation are certainly stand-out benefits, it is the improvements to the customer journey where the most benefit may be felt. The experiences of insurance customers hardly have a great reputation, certainly compared to other industries. But the modern customer is more likely to engage digitally, thus the digitisation of core operations enables insurance companies to provide far more personalised and flexible insurance products.
Digitisation enables insurance companies to create an end-to-end view for customers, bringing them closer so they can make offers much faster and at the point of interest.
Automation is also being leveraged for speech and text analytics, which enables automated interaction with customers, as well as gathering additional insights to further enhance the customer journey.
Digital Ecosystem Partnerships
As briefly mentioned above, insurance companies are starting to benefit from the concurrent digital transformation of adjacent industries. One of the most important of these for the insurance industry is the healthcare industry. There are also blossoming digital ecosystem partnerships with the automobile and manufacturing industries.
The major benefit of these digital ecosystems is the sharing of real-time data sets, which are helping provide new interpretations of risks. Such data allows insurers to work more closely with customers through their technology partners to identify and mitigate risks early on in the process.
This trend for industry collaboration via these digital ecosystem partnerships is only going to increase from here. It is likely going to influence the insurance value chain by naturalising insurance in the customer journey, especially as insurers become more able to demonstrate strong data privacy and cyber security.
If you’re hiring or searching for a new role in 2023, get in touch with our specialist recruitment team here at Exchange Street to help you find the perfect cultural fit.