February 21, 2018 by Staff
The majority of insurance companies are already working diligently to modernize their legacy underwriting and claims systems, as well as their business processing systems and website functionality, but to varying degrees, according to new report by A.M. Best.
The report—entitled “Insurers – Behind the Technology Curve, and They Know It”—notes that challenges remain, especially for those insurers that have grown through acquisitions and are still working on integrating claims, reserves, underwriting and pricing systems.
A.M. Best says insurance companies need to maintain a sustained focus on modernization, while tapping into the full power and potential of the data they collect, which could be accomplished by partnering with insurtechs.
In addition, the report states that industry CEOs can no longer leave the technological side of the business to the IT department.
“They need to have an in-depth understanding of technological concepts and how they relate to specific business operations and strategy, given the potential for industry disruption,” said Sridhar Manyem, A.M. Best’s director of industry research and analytics. “If done properly, technological improvements and increased automation can increase efficiency and offer better insights.”
A recent A.M. Best survey found that insurers feel the four essential areas most in need of tech upgrades are customer experience, legacy administrative and claim systems, data aggregation and mining, and underwriting systems.
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This story was originally published by Canadian Insurance Top Broker.