Digital Trends Evolving the Insurance Industry

The insurance industry is experiencing an exciting transformation, prompting technology adoption, especially digital connectivity, to rise to an all-time high. In fact, according to recent research from Accenture , 66% of insurance executives report that the pace of digital transformation for their organization is accelerating and 81% of insurance businesses and IT executives worldwide acknowledge that technology has become an inextricable part of the human experience.

As the industry continues to evolve from legacy systems and processes, several forces of change are influencing the technology adoption journey, requiring brokers to take on technology and tap into the digital ecosystem to compete and succeed in the market. Let’s take a look at these trends that are shaping the insurance industry and how they will continue accelerating change.

Rapid Technology Change Created a Data Obsession

The insurance industry is swimming in data. Due to the industry’s increased momentum in technology adoption, the demand for more intelligence is higher than ever.

Data lake technology can help brokerages unlock the powerful potential of data and uncover valuable insights into their operations and their insurer partner relationships, as well as benchmark themselves against the industry. Data-driven brokerages stand to gain a competitive edge to better provide choice, advice and advocacy to their clients through improved decision-making, enhanced productivity, process optimization and ultimately serving the customer how and when they want to be served.

Large Brokerages and Up-And-Comers Have New Demands

The M&A market continues to rise, with deals for property & casualty and benefits brokers in Canada and the United States up 16% , as recognized by M&A advisory firm OPTIS Partners in the first half of 2022 compared to 2021.

Regardless of size, or future M&A outlook, open browser-native technology is necessary to stay competitive and succeed in today’s rapidly changing landscape. Browser-native technology offers a single access point for multiple systems, which creates simpler user experiences and streamlines frequently used workflows. It also provides an industry-standard approach to software development, speeding up adoption of new features, access to the application and reducing software management overhead.

Consumers Demand Simple, Digital Experiences

Companies like Apple, Amazon and Uber have set consumers’ expectations for intuitive and easy-to-use digital experiences. There is no reverting back to ‘the good old days’. Traditional brick-and-mortar brokerages need to offer digital experiences through omnichannel, mobile-first interactions that provide seamless customer service. Deloitte’s P&C Insurance Re-imagined: 2025 indicates that 70% of consumers expect an omnichannel experience for policy research and purchase.

As consumer expectations continue to trend toward digital and instant ease of access, embracing omnichannel technology will future proof your business. Incorporating an omnichannel experience for customers provides a simpler, modern experience across all communication channels in the customer policy lifecycle. It also allows brokerages to provide customers with self-service technology that gives them the freedom to access insurance information, documents and online bill pay on demand. Through an omnichannel experience, brokerages can optimize client relationships, differentiate their business from their competitors and drive client retention through a connected customer experience.

 

The insurance industry is evolving. Rapid technology change, new business models, and the demand for simple, digital experiences are accelerating change in our industry, and it is not showing signs of slowing down. By abandoning the broken processes of the past and embracing practical innovation to create simplicity and connectivity, brokerages will benefit from new levels of productivity, simplicity, intelligence and value to drive success today and tomorrow. The time is now to pave your technology path forward that provides the choice and flexibility to innovate.