This year is all about market modernisation for the insurance industry and the need for change to stay relevant. This includes the adoption of technology to speed up processes, provide accurate reporting and transparency for both the insurer and client. It is clear that the insurance sector is somewhat conservative and slower to react to technology than other industries, but why is this? At VIPR we look at the challenges that could be holding the insurance sector back.
Willingness to change
The biggest battle for the industry is a willingness to change to integrate new IT tools. Traditional thinking and manual methods may be the norm, but unless the decision is made to step up and go digital no one will follow suit and businesses will remain stagnant. Creating an environment for change is key, which should be led by the decision makers – those at the top. Yes it will take time and some pain to change, but the benefits of embracing new software solutions will ultimately outweigh backward processing.
Regulations such as Solvency II and the TOM (Target Operating Model) initiatives may be adding to the pressures to adopt technology but do insurance companies have the skills to get tech savvy? There are certainly practical and operational challenges, which need addressing, but commitment and training will provide the starting point businesses need to help integrate new tools to their business strategies. With the introduction of bespoke IT solutions, insurance companies can be more at ease with software that is flexible and can be adapted to suit their needs and needs of the client. In this way business can be quickly and easily transacted, managed and data handled.
Technology does have a price and investment is always a risk. Think about the benefits – profitability and growth, reduced processing time, managing huge volumes of data, automatically responding to regulations, accuracy and transparency and improved customer service, the list really does speak for itself. In order to drive forward, investment shouldn’t be a barrier. Ask yourself what will it be worth to your business in the long term and is it a risk that is worth taking?
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At VIPR we provide solutions for Bordereaux Processing, Coverholder Management, Complaints Handling, Quote & Bind, plus reporting. We also have our Audit Portal. Click on one of the solutions for more info.
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