Findings from a new global thought leadership report published today by the no-code digital insurance platform provider, INSTANDA – Re-imagining the Digital Insurance Landscape: 10 Years from Now – highlights a once-in-a-generation opportunity to transform the industry*. However, a new type of muscle is required to truly embrace what the Information Age has to offer, as experts warn many insurers risk being left behind.

Curated from a series of one-to-one interviews with 40 experts – including recognised global software vendors, insurance consultants, leading insurers, and members of the Insurtech and MGA community* – INSTANDA’s report shines the spotlight on customer-centricity. While there is a great deal of discussion on the drivers for change, the consensus is that the industry must invest in the right technology, get better at telling its own story… and do so quickly.

Below is a summary of some of the key findings from the report.

Time to place the customer at the forefront

Research from INSTANDA shows that consumers are indifferent to the industry; they have neither a positive nor negative perception of the industry and are yearning for a more personalised experience. This signifies a huge opportunity for insurers to better serve customers. UK and US consumer research findings highlight the need for a far more personal, frictionless customer experience, as 26% (1 in 4) respondents noted they want to be able to make a claim easily, 23% want to make policy changes on their own, and 21% want products that are personalised to them.***

Experts unanimously agree that insurers need to move away from designing new products and customer experiences through the insurer lens. Instead, they must refocus their efforts on understanding exactly what the customer wants, expects, and needs.

The options for integrating tailored, digital insurance solutions into an embedded partner’s value proposition are considerable – with many experts pointing to it being one of the biggest transformative opportunities for the industry and its customers.

Seeing the AI opportunity ahead of the risk

It’s clear that AI and connected technologies are transforming every aspect of the insurance value chain. There’s a huge opportunity for AI to intersect operational efficiency and customer service, but the insurance industry is still in the embryonic stages of knowing exactly what to do with Generative AI. There appears to be a blurring of lines. Experts call for further clarity and cautious optimism to realise the benefits of AI as an effective co-pilot, discussing why seeing the ‘opportunity’ ahead of ‘the risk’ is a defining characteristic of progressive insurers.

AI and Generative AI has the potential to change the way consumers see, engage with, and purchase insurance. Experts agree that AI will have the greatest influence on the areas that INSTANDA’s research also indicates are most valuable to consumers: product personalisation, greater choice, and better claim processing.

However, one of the biggest calls-for-action from the report is for insurers to bring their data estates into order. Experts discuss how the industry has vast amounts of data, but this isn’t necessarily translating into better outcomes for the customer or being realised at a risk management level.

In an era where data abundance is both a boon and a challenge, the insurance industry must find a way to utilise large quantities of data to drive innovation and improve decision-making, while also addressing the challenges around privacy and managing customer information.

Building ecosystems that are fit for the future

Experts share why the case for executing processes, or parts of processes in an ecosystem, is quickly rising in importance. The explosion of insurtechs has plateaued off to create strong digital offerings across the insurance value chain. Talking from experience, report contributors discuss the impact this is having on core modernisation, sharing how the ‘Middle Layer Solution’ can add years to an aging legacy system. However, for the industry to break free from its legacy constraints, there needs to be a wholesale change in mindset to accept that it’s not just okay but necessary to meet business demands with non-core technology.

Commenting on the findings of the report, Tim Hardcastle, CEO & Co-Founder of INSTANDA, said:

“Our report has shown that there’s far too much friction between the customer and insurer across the value chain. Insurers know this and want to do better, but a shift towards a more personalised customer experience requires flexible technology and processes, which is easier said than done. Many insurers struggle to keep pace, as the technology that brought them to this point, is now unable to serve them for tomorrow. Embracing change and innovation, especially in collaboration with insurtechs, helps overcome these problems and positions it for growth for the future.

Compared to five years ago, there is now a huge swathe of progressive insurers and insurtechs, including INSTANDA, working collaboratively. They are leveraging data for insight, creating ‘retail like’ feedback loops and processes to use this information to better serve the customer, and manage claims in a more efficient way. Right now, the key challenge facing the industry is to ensure it can keep pace with changing customer needs and expectations. This means adopting a new mindset – investing in new technologies and ways of working and being more open minded about partnerships. As a true core insurance platform, we work tirelessly to stay ahead of the curve. Using our unique no code technology, we not only help clients meet their customer needs, but pre-empt them, to help bring a better insurance experience to more people.”

You can download the full report here.

About the Report

*This report, Re-imagining the Digital Insurance Landscape: 10 Years from Now, was published in January 2024 and all copyright belongs to INSTANDA.

The contents of this report have been created following one-to-one interviews with the named contributors between October and December 2023. Contributor insights have been taken from individual responses to pre-defined questions regarding the future of the insurance industry.

Insights provided within the report represent individual industry observations and predictions, and should therefore be treated as opinion, and not fact.

The opinions expressed in this report are valid only for the purpose of this report. As such, the report does not represent professional advice.

Insights also belong to the individual contributor rather than the organisation that they are employed by or are contracted to work for.

References to external facts and figures are believed to be reliable but have not been independently verified. However, every effort has been made to be as accurate as possible.

**List contributors

***Censuswide: INSTANDA surveyed 2,000 UK and US consumers in early December 2023 as part of the report findings. The survey focused on buyer behaviour, customer sentiment and purchasing pain points within insurance.

Content provided by INSTANDA.