P&C providers recognize the need to digitize, but these opportunities for growth come with major challenges. In a recent enlightening discussion, Mark Breading, Senior Partner at Resource Pro’s Consulting Group, and Sabine Vander Linden, CEO and cofounder of Alchemy Crew, explore both the exciting changes and roadblocks facing P&C insurers looking to digitize. Here are a few highlights from their discussion:
- External factors beyond insurance deeply impact business models of P&C organizations. Alchemy Crew helps insurers decide on partnerships or investments in startups, emphasizing the increasing need to understand both technology and non-tech players in the insurance sector.
“We see more and more demand now for understanding what is happening with tech, and with the non-tech players within our sector.”
Sabine Vander Linden
- Insurers must adapt to meet evolving customer expectations, especially where digital transformation is concerned. Recent events like the COVID-19 pandemic, global conflicts, and rising inflation and interest rates complicate these expectations further.
“I think a lot of the time, the initial thinking is, “Well, what am I going to do internally with this technology?’ You really have to think about customers and the risk in the world as well.”
Mark Breading
- Digitization requires cultural change to fully address new challenges that insurers face. Younger customer segments seek seamless digital experiences. Remote work is more commonplace, demanding a more robust digital experience. The future of insurance requires embracing seamless digital experiences and operational simplicity.
“Insurers have to remain relevant for their customer base, and the customer is changing. I think many players realized just as we entered COVID that they were not prepared for dealing with digitization and remote working.”
Sabine Vander Linden
- Insurtech is vulnerable to external factors, possibly explaining a significant recent drop in Insurtech investments. It’s not all bad news, however; Generative AI and its applications for the insurance world has more promise than ever before.
“Now we have all these models, we have all these bots, we have all these things generating and creating content. How do we get our arms around this and manage it?”
Mark Breading
- Connected world technologies will become more relevant as we continue to face climate-related disasters and weather events. Geospatial data, IoT sensors, and digital twins can all help insurers navigate the evolving landscape of environmental challenges and risk assessment.
“For us to solve for those really tangible environmental changes and weather-related losses, we need a variety of technologies to help.”
Sabine Vander Linden
It’s time for the insurance world to fully embrace technology as a necessary enabler for the next generation. Organizations should feel excited and ready to adapt and optimize these exciting new capabilities to stay relevant in the evolving insurance landscape.
Click here to watch the full webinar.