Insurers still struggling to execute modernization plans

Although insurance carriers have taken up the Herculean task of modernizing their operations, most are struggling to fully realize those plans, according to a survey from Earnix, which found that 90% of insurers have not fully developed and executed operation modernization strategies.

“Carriers have realized that they must prioritize insurance operations modernization,” Dror Pockard, chief strategy officer for Earnix, said in a release. “Adopting new technology is critical to help insurers to improve customer experience. The time for modernization is now; any delay will harm carriers’ ability to achieve their business goals.”

Modernizing operations was among the top five organizational priorities for 87% of insurance carriers surveyed by Earnix, and 1 in 5 said they plan to update their infrastructure in the coming two years. Further,

Insurers ranked pricing and product personalization as the internal process that could benefit the most from modernization. To offer the personalized experience policyholders desire, Earnix reported advanced simulation, real-time monitoring, AI with machine learning at the point of interaction and automation are all key.

Earnix reported product personalization, along with telematics-based products, will see the most significant increases in investment, while dynamic pricing and fraud analytics were also highlighted as areas that show a great need for automation and efficiency improvements.

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