There has been a lot of talk about how insurers need to pour more resources into improving the experience for customers. The existing systems are fragmented and consumers are looking for better ways to streamline the insurance process. A recent Fujitsue poll found over 95% of consumers willing for insurance companies to use their data in order to offer a better array of insurance services. So why is industry so far behind?
Legacy Systems - Most consumers see the fancy marketing driven by large marketing budgets but failure to see the back-end processes utilized by most insurance companies. Unfortunately system upgrades are a large investment and cant be done easily if they are done properly. Companies will need to decide what their digital strategy will be shortly if they plan on being competitive in a digitized economy.
‘Big Data’ - Actual statistics have dominated the past as professionals use environmental models and claims history to calculate the premiums charged to consumers. With the development in technology and the emergence of the "Internet Of Thing", we are going to see a drastic change in the insurance market. Real time data will allow insurers to not only make better underwriting decisions but allow them to engage in proactive risk management techniques.
Distribution Channels - The end consumer is forced to fragmented product channels both physically and virtually. The industry will need to find better ways to distribute new technologies as they emerge in the market. The technological revolution is upon us and it is happening way faster than the industrial revolution ever did. Over the next five years we are going to see major shifts in the insurance distribution channels for the betterment of consumers.
What do you think?
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