Published on Apr 22, 2022
Ever since the Pandemic hit, the Insurance industry is upgrading at a fast pace. The main focus hovers on pandemic rehab and customer experience by developing data-driven ecosystems and hyper-personalization models.
According to a Gartner research, the long-term spending for insurance is forecast to grow at a CAGR of 7.5% to $311.8 billion in 2025 driven by IT services and software growing at a CAGR of 9.2% and 12.3%, respectively. These increased investments in data, AI, and digital twin technologies resulted in the emergence of a new generation of business and intelligence in the insurance industry.
But there have been several obstacles that the insurance business has faced.
The challenges of the current or traditional insurance industry
- Shortage of speed to deliver new services into the market: Because insurance businesses’ digital implementation timescales are lengthier, customers may feel their insurer is slow and unable to cater to their demands.
- High IT run time expense before migrating to digitally improved systems: When trying to get rid of legacy systems and introduce new sales methods that are incompatible with their current legacy technology, becomes substantially more expensive and time-consuming.
- Interpreting a considerable volume of client data: With the vast amount of data available for customers and employees in one system, there comes the challenge of ensuring the shared information is comprehensive an