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Welcome to the TINtech Annual Report 2019. This report is based on the results of the TINtech 2019 research survey, interviews with business and technology leaders and extensive research into digital disruption and transformation in insurance.
This year's conference and report focuses on the growing influence technology is having on the insurance market and how we can effectively respond to digital change. The digital modernisation of the market is arguably the most significant change to the insurance landscape since the introduction of comparison sites. Stepping up to the challenge of leveraging digital transformation is critical to enhancing the customer experience, future growth, and maintaining a competitive advantage.
The pre-conference interviews and survey identified four key discussion points: the technologies currently being touted as ground breaking for the insurance industry; business priorities; the perceived obstacles to successful implementation and leadership for driving transformation. This year we’ve taken a slightly different approach in the report and included more extensive research. You may find it useful for strategic discussions on introducing customer-centric technology and the impact on your business model.
My thanks as usual to everyone who attends TINtech and those who were kind enough to give up their time to speak to us.
Three key challenges facing insurance practitioners
Delivering transformational change is a key challenge facing the insurance industry today. Implementing a programme of far-reaching and continual change in strategy, organisational structure, operating model and process is necessary despite barriers such as legacy technology, outdated procedures and embedded cultural behaviours.
It’s clear from the survey that everyone is trying to understand how the changes brought about by rapidly changing digital technology will impact our sector and business. One respondent summed it up succinctly as:
"Feeling a bit like a rabbit in the headlights-with so much change and so many new technologies, it's difficult to prioritise and focus."
Chris Payne, UK Insurance Technology Leader at EY added:
"The key challenges facing insurers in adopting new technologies are strongly linked to the ability to solution and scale multiple different technologies and to future-proof the decisions and investments being made, at a time when organisations are struggling to define what their future businesses may look like in 5-10 years’ time."
Despite this multifaceted, rapidly changing business environment, three key challenges can be identified that insurance leaders are focused on:
Many felt that encouraging innovation in a heavily process driven industry riddled with outdated legacy technology is the most challenging task facing companies across the value chain. However, it was also acknowledged that failing to embrace change and put in place innovation enablers would lead to a loss in competitive advantage and overall business performance.
Simply put, ongoing, continuous and sustainable change is necessary if a business wants to stay competitive. As challenging as it may be, changing an organisation’s culture to promote innovation and disruption will lead to improved performance and safeguard its future.
It is clear from the survey that data quality, current data use and leveraging new sources of data are the foundations upon which the next phase of digital transformation will be built.
Interestingly this topic went ‘off the boil’ a couple of years ago as AI, Robotics, Cloud and Blockchain took the centre of the buzzwords stage. But things appear to have come full circle as organisations realise that in order to take advantage of the new technologies coming over the horizon, having an effective, and data wide strategy across the organisation is critical.
Customer expectations have been greatly influenced by the online processes introduced by companies such as Amazon. In insurance, the speed of change and a never-ending stream of new technologies have made it difficult to pinpoint what is needed to provide a seamless customer experience.