December 29, 2022

Will 100% Digitalisation Ever Happen in the Insurance Industry?

 A person reviewing digital insurance on their laptop

The introduction of digitalisation in insurance took time, but the rise of modern digital technologies has undoubtedly brought on a frenzy among insurers to invest in digital insurance. Insurance sector digitalisation is no longer limited to operation optimisation or digital forms. It is about a holistic digital transformation that is driving the creation of new business models and vastly improved customer experiences.  

Given the new growth opportunity in the sector, can digitalisation completely overhaul legacy systems and traditional modes of operation in the insurance industry? Let’s find out!

What Does the Recent Digitalisation in Insurance Trend Reveal?

The insurance tech spending in the UK and US is estimated to increase by over 25% from 2022-2026. Insurance providers are expected to use this tech spending to digitise their core operating models, build self-servicing tools, and personalised digital insurance products. Many insurers understand the value of digital transformation for their business and clients.  

Millennials Are Buying Insurance

Previously, the insurance industry relied only on legacy systems to offer insurance and faced technological barriers when trying to go digital. However, the recent rise of digital technologies in insurance is due to the change in demand. Today, digitally-attuned Millenials are actively buying insurance. They have vastly different preferences than the boomers and Gen X. As time passes, more Millenials and Gen Zers will buy insurance. They will expect digital services and personalisation that only digitalisation in insurance can offer them.

The Digital Heads in Insurance Companies Are Getting Leadership Backing

The new leaders of insurance companies are backing their digital heads as they understand the value of digitisation in the industry. It has allowed insurers to look into modern tech to overhaul their legacy systems and improve their core capabilities. Even though there are budgetary constraints, insurance providers are outsourcing their digitisation and finding ways to use their resources more efficiently.  

Insurance Providers Are Cementing Digitalisation as a Core Business Goal

The uptake of insurance industry digitalisation has encouraged insurers to cement it as a core business goal. Insurance companies are executing plans that will enable them to add digitisation into their processes. They are also developing long-term strategies for sustained digitalisation. Companies are hiring and training talent that can advance companywide digitisation efforts. These employees can also help change the minds of older employees hesitant to go digital.  

Will the Insurance Industry See 100% Digitalisation?

Even though many insurance companies still use legacy systems and are averse to digitisation, it will not stop others from adopting it as their business core. More insurers will likely follow suit when they notice the long-term budgetary benefits and client satisfaction ratio offered by digital services. While it’s challenging to ascertain if digitisation will overhaul traditional insurance, it’s safe to expect more industry changes and advances to come with new technology.

Wesurance is a platform that empowers insurance companies and brokers to easily build, develop, and grow their own digital insurance branches. Through a simple-to-use and easy-to-implement solution, you can build your own digital insurance quickly and with ease. No worrying about coding to integrate the digital insurance process into your insurance business. Learn more about us at https://www.wesurance.io/.  

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