Gordon Vater, managing director of the technical division at Gallagher Bassett, explores the main factors contributing to shifts in the insurance sector and shares solutions insurers need to know to leap forward this year
The world has experienced significant changes since 2020 - many of which will be permanent. The insurance industry has certainly felt these changes and will need to transform in order to adapt to today’s new world.
While it’s important to reflect on the past two years, it’s even more important for leaders to equip their businesses with the tools and resources needed to reset in 2023.
Here are the top three things to consider to succeed this year.
1) Innovation and technology in the insurance industry
Already taking the world by storm this year is technology and innovation.
As the insurance landscape continues to evolve, new driving forces are emerging around recent trends, such as digital automation and process improvements. Those that embrace these trends have a unique opportunity to leap forward in the market.
Keeping pace with ever-evolving technology will be the key to insurers’ success this year. Effective data analytics as well as the efficient integration and leveraging of data can provide businesses with the edge they need to capitalise on strategic opportunities.
Risk management information system platforms can analyse a wide scope of data, delivering more accurate predictions on individual claims, markets and consumer trends. This allows businesses to make more informed decisions.
Access to this convenient and precise data can transform insurers’ ability to create new products and services, while also enhancing existing product lines.
In today’s competitive market, data insights can offer firsthand knowledge of market opportunities and customer behaviours, providing the necessary tools to gain new leads and ignite business growth.
2) Reimagine the employee proposition to attract and retain talent
Last year was the year of the Great Resignation - and this has followed us into 2023.
It’s predicted that the battle for talent will continue throughout the next 12 months, so the strategies insurers put in place now will be critical in helping them combat the talent gap.
Staying ahead of the curve by setting up the correct strategies now will help ensure businesses are motivating and retaining the right people for the job.
3) Regain momentum and stand out from the crowd
As industry-wide shifts take place, it is important that insurers ask themselves where they want to fit in.
In today’s competitive, ever-changing market, it’s crucial for companies to differentiate themselves by delivering a successful claims operation to regain momentum, grow and retain business.
A high performing claims operation is the driver to improving results and enhancing insurers’ presence in the market, helping them stand out from the crowd.
Partnering with a third party administrator can support insurers by delivering better risk management and claims outcomes, which ultimately helps to reduce the total cost of risk.