This IDC Financial Insights Presentation provides our in-depth analysis of the insurance industry, and finds the following as the top challenges:
- Increase in customer demand for anytime, anywhere, seamless insurance buying and service experience
- Ever-increasing expectation from distributors for business on the move in an increasingly connected digital age
- Rising competition from new entrants and non-traditional players that traditional insurers are unable to tackle due to a lack of product and service innovation
- Balancing legacy maintenance costs while also investing in digital technologies
- New threats like cyber-risks, leading to increased data protection, data privacy, security, and compliance needs
Insurers have been traditionally slow to adopt new technologies compared with their retail or banking counterparts, but we observe that the industry is moving away from this approach to embrace a transformation journey. The good news is that some players have already started strategic investments in transformative technologies to stay relevant in the market and remain competitive. Others are taking the cautious first steps. Business-change leaders in the insurance industry are currently trying to optimize the running costs of legacy systems to fund digital initiatives.
This industry report covers the challenges that the industry faces today, its response to these challenges, and key investment trends. It provides various examples of innovation by forward-looking insurers to positively transform their businesses, while also tackling the existing barriers. It also offers essential guidance to insurers on digital transformation and will act as a good reference for technology suppliers to understand the areas where they can support carriers in their transformation journey.
Analytic applications, Application management, Big data analytics and discovery, Customer relationship management applications, Governance, risk and compliance infrastructure, IT operations and implementation, Internet of things, Marketing operations, Networking and connectivity devices, Sales operations