Insurers: Fintech Trends and Future Proofing

In this insightful piece, InsurTech Digital speaks to Laurence Leyden, Regional Vice President of Financial Services at Workday, and explores how the insurance market is integrating new insurtech capabilities.
Insurers are reacting to the pressing need for innovation in an increasingly digital world, and although the industry is traditionally slow to adopt new tools, insurtech is now a vital opportunity. Leyden discusses how, through the lens of fintech trends and evolving customer expectations, forward-thinking insurers can leverage technology to future-proof their businesses.
How is the insurance market looking to onboard new insurtech capabilities today?
"The insurance industry is bracing for change. As risks abound in an uncertain market, insurers are looking to innovate and adapt through technology. In an industry that has traditionally been slower to adopt new tools, insurtech is presenting opportunities for insurers to strengthen their position with new services and streamlined internal processes," says Leyden.
With insurtech, forward-thinking insurers can leverage data to mitigate risk exposure for improved decision-making and innovate on policy management, while enabling on-demand accessibility, and flexibility with pricing models.
"When asked about the elements of a future-proof insurance business, our research found nearly half (45%) of insurers highlighted customer satisfaction as a top priority. In terms of onboarding specific insurtech capabilities, on the customer side, priorities are around more intuitive user experiences and automated services.
"On the insurer's side there is an onus on better decision-making empowered by AI and data insights. By applying the right technology, insurers can forge a path to greater resilience and stronger customer-centric performance."
How can fintech firms can service insurers, and what innovations are driven by fintechs?
"Insurers can learn a lot from new business trends emerging in fintech. In the fintech space, we’re seeing the rising popularity of neobanks and online banking platforms, with a focus on intuitive, mobile-first solutions. There’s a growing expectation for this accessibility within the insurance industry, and insurers should look to integrate new customer experience-oriented solutions."
"By learning from fintech models, insurers can look to innovate the front-end and back-end of their products and services. For example, innovation here can help enhance underwriting capabilities, with algorithms helping to define customer risk profiles, opening up greater customisation for plans."
Such an approach can deliver personalised touch to customer plans at scale. This is important because insurance isn't a space where you can take a one-size fits all approach. You need to have adjustable modules or options to accommodate changes in lifestyle patterns, across wellness, age ranges and general health.
"Our survey insights highlighted that almost half (47%) of insurance executives are looking to technology as a key tool to future-proof their business, centring on agile digital architecture for streamlined operations. But it’s critical to remember that any solution implemented should go towards improving the end customer experience."
Where do you see the future of insurtech? What innovations are revolutionising insurance today?
"As with many industries, the future of insurtech lies with AI and advanced analytics. These will play a pivotal role in transforming the insurance industry, from underwriting and claims processing to customer engagement and risk management. "
"We’re seeing disruptors in the market take control of new customer bases, with insurtech startups leveraging technology to reinvigorate traditional insurance models, providing more flexible, transparent, and customer-centric solutions."
"In this context, we found that 76% of C-level executives are concerned about the future insurance outlook.
"For that reason, it's key to work with a trusted and established partner when integrating new solutions – one which can navigate any unexpected needs, deliver on goals and ensure the overall process is seamless."
What must insurers meet shifting consumer expectations and combat more modern digital challengers?
"Digital transformation will be key. Those that see technology as a tick-box exercise, could face a rude awakening. The market share will shift in favour of those insurers that are agile with data, offering competitive pricing and customisation through efficient underwriting."
"Insurance leaders need to stay laser-focused on the customer – how can they keep improving the service and experience they offer? This questioning process might even entail a full review of internal and external processes. Again, AI will help here – insurers can accelerate operations massively, reducing the unnecessary administrative burden behind claims management, risk assessment, predictive analytics and fraud detection by using it."
"Unfortunately, as it stands, poor technology uptake for insurers is bottlenecking productivity. Our data on insurance impacts shows that there are alarming statistics around delays of more than three days in monthly financial report completion for 70% of insurers, while 60% face fatigue with data reconciliation. Recognising the urgency, 83% of insurance respondents plan to modernise finance and planning operations with cloud migration or system updates as investment priorities. Combined with new AI solutions, this points to a future in which insurers are better able to serve their customers and keep those digital challengers at bay."
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