News

Insurance is changing – time to adapt and survive

27th September 2017

This recent headline caught my attention.

“Adapt to survive an uncertain future, warns insurtech start-up founder”

The thrust of the article was that Insurers are being held back by legacy systems. The author contends...”With new technologies constantly being developed and clients that live in the online world, the client relationship is being transformed and insurers need to figure out which course of digital innovation to follow.”

We are a software company so self-evidently we are excited by the huge potential of new technology, but this statement worries me. I have no argument with the fact that Insurers are being held back by legacy systems. Indeed I have waxed lyrical on this subject over many blogs. What I take issue with is the statement that insurers need to figure out which digital innovation to follow.

How do Insurers adapt?

Insurers need to figure out, and keep figuring out, what their customers want. Only when they understand what they need to deliver should they seek out the right technology. Expecting insurers to follow insurtech trends seems to be putting the cart before the horse.

So how do Insurers adapt? From a technology perspective it is about focus and looking beyond the familiar.

  1. Define the business strategy. Understand how you want to support your customers now and in the future. Honestly assess if the strategy can be delivered by the existing technology in a timely and cost effective way. IF NOT:
  2. Agree a short list of potential technology solutions. Do not make the mistake of looking at the same set of providers. Choosing technology on brand awareness alone is no guarantee of success. Look for providers that have rich functionality but are also cost effective. There is a good reason that vendors can do both.
  3. Set strict assessment criteria. For example these could include:
    • Overall customer experience
    • Ease of implementation and change
    • Ability for the business to be self sufficient
    • Cost of ownership
    • Integrity of the supplier

Choosing technology can be daunting, especially given the choice in the market. However, it doesn’t need to be difficult. Once you have clearly defined your business goals, you can then find a solution that fits and a company that you trust to deliver.

Insurers certainly do need to adapt to survive an uncertain future. The way to do this is to understand and deliver what customers want. Choosing the right technology will be crucial; however it is only one piece of the jigsaw. Success will ultimately be driven by the right leadership, company structure and culture. Legacy is not just about technology.


Content produced exclusively for Total Systems plc, specialist providers of insurance software for quote; rating; policy administration and claims

Latest Blogs

2017

November

Emerging technologies – risk and opportunity

October

What does the future hold for commercial insurance?

September

Insurance is changing – time to adapt and survive

August

Does AI deserve the headlines?

May

Seeing through the eyes of the customer

April

Insurance technology – simplify the complex

March

InsurTech, ignore it at your peril!

2016

December

It’s Crystal-Ball Gazing Time Again

November

How ready are you to combat fraud?

October

Actions speak louder than words

September

Efficiency, agility, and profitability

How can you be more customer-centric?

August

Old Technologies - It is OK to plug the gaps

New Technologies - Same Old Systems

June

Running to stand still

May

Is your business ready to adapt?

March

No, seriously, what can you claim about your claim systems?

What can you claim about your claim systems?

February

It's people that have the ideas

January

Separating the Movers from the Shakers in 2016

2015

November

The challenge to be different – it’s all about the people

September

Security, Simplicity and Speed - the future of Financial Services

July

The New Breed of Quote and Rating Modules

June

INSURANCE INNOVATION SUMMIT 2015 - Hosted by Ingenin Ltd

April

Speed and Personalisation – aspiration or reality?

March

Team spirit is an illusion glimpsed in the aftermath of victory... or is it?

January

David or Goliath?

2014

December

What's your New Year resolution? Here are three of ours

November

2014 Insurance Technology Event - Championing Innovation - Hosted by Post Events

The maverick in the ranks - how do we deal with the talented non-conformist?

September

Are you Responsible, Chilled, Sociable, or Happy?

August

A Customer for Life

July

Being different

June

Cloud computing – a huge opportunity for the Insurance Industry

May

Past failure is a threat to future success

April

It isn’t broken yet - is change too risky?

March

Today’s word is ENABLE

What is Value for Money?

February

How to make vision a reality – it’s not that difficult

The Challenge IS the Opportunity

January

Instil a culture of innovation and creativity

Three steps to success in 2014

2013

December

What customers want from the Life Insurance industry

Themes from Insurance Strategy Insights event

November

The need for competition

Insight must lead to action

What is disruptive technology?

October

Closing the insurance delivery gap

September

Reliability much more important than price

August

Where has all the creativity and innovation gone?

Is there too much fear in business?

July

"Simplicity" is not as simple as it looks

Time for Innovation

Standing out from the crowd

June

Insurers need to innovate and excite - or die

May

The danger of business inertia

April

The BIG Decisions

The work/life balance

Coping with exploding data

March

Trust and loyalty go hand in hand

February

Bold and brave

January

To stand still is to go backwards

2012

December

The year ahead in Financial Services

Love it or hate it, you can't ignore the influence of Twitter

When is it better to 'start again'?

November

Differentiation is the key

October

Solvency ll - may be delayed but certainly won't go away!

Better by the bundle?

Insurance and the net

Personalised technology

September

USA leads the way

August

Technology gold medals

New is not always better

Stand still and get left behind!

July

Social media blamed for poor data flow

Banks will abandon 50 per cent of branches in 8 years