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P&C Insurers Face Unique Challenges

Insurance is one of the oldest and technologically one of the most outdated industries. It has been experiencing unprecedented growth. P&C insurers must constantly reinvent themselves by adding new business lines and merging products, adding services such as claims and underwriting in order to stay ahead of market trends. The rise of insurtech has stirred up the aging industry with a new frontier into the digital economy—one driven by digital consumers. In order to retain pricing discipline, there is a significant focus on the cloud, artificial intelligence (AI) and machine learning technologies. Chatbox and AI projects are now on the horizon. What else? Telematics, mobile apps, self-service, drones, and other advancements are changing products, pricing, claims, services, and other aspects of the P&C insurance industry for the better, according to CB Insights.

Digital consumers have more complex needs and are more knowledgeable about their choices than ever before. They want personalized offerings and they want it when they are ready to buy it. The digital economy is driving all channel interactions where one can purchase insurance products and/or learn about the offers: P&C insurers need to be available 24/7 at all digital touchpoints. There can’t be cumbersome processes, 15-page hard-copy paperwork to fill out, and a 7-day mailing timeline for the buyer to see what they purchased. The products need to be simplified with flexible policies and available 24/7 digitally with multi-distribution options.

What about the next disruption from innovation: Electric Cars and EV Insurance?

Though it has made headlines that auto sales dipped this year, there is a rise in EV. Tesla plans to manufacture 150,000 EVs in China at its Gigafactory 3. Toyota/Lexus is making a big EV move. Mazda launched its first mass market EV and Smart launched the EQ Fortwo electric micro-car. Do all P&C companies insure EVs? From Direct Line and Aviva to LV, there are companies providing insurance for electric cars or integrating EVs into their online quotation systems.

Tech Talent to Navigate Change

What tech stack is going to be needed? What tech competencies will make a difference to automate P&C insurance quotes in 2025? Will claims and risk modules have RT integration with vehicle dashboards? Insurers will require instant access to information to monitor, measure and improve all aspects of the business and the holistic talent to maintain and upscale services to stay ahead of trends and internally audit the processes and workflows when you can’t. What information will be available from DMVs?

Current industry giants use decentralized operating support systems that do not integrate with business support systems and/or current digital marketing and sales platforms. Most have in-house servers and look into cutting costs by changing these systems. These systems are often patched together with only minor upgrades over the years. Their interfaces are for the retiring talent pool and not really for the newer generation entering into the labor force Know More.

If P&C insurers are not recruiting the right people now, they will have fewer chances to be successful in the next chapter of the digital landscape. Digital channel winners require instant access to info to monitor, measure and improve all aspects of the business. One common challenge will be automating processes heavily relied on through dated technology and platforms. These systems, often patched together with only minor upgrades over the years, continue to impede agility in product development and user experience for customers, intermediaries, and other ecosystem collaborators.

Whether you are launching an entire technology system overhaul or aligning with one or several third-party vendors to exploit innovative technology capabilities, Amzur will be your tech talent partner. Our holistic approach to talent strategy strengthens our IT professionals. Contact us today to see how we can help you succeed in P&C insurance. 

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