A topical theme in the insurance industry is the rising competition between young, online-driven insurtechs and traditional insurance businesses. Consumers seem to prefer what's online, fast and easy, but insurance has been stuck in the past – too much red tape, too many in-person exams, too long a process. Now, the digital transformation of the industry is happening at a rapid pace. Insurtechs are everywhere, covering every sector and raising money at record-setting clips. But the legacy insurance businesses, from carriers to agencies, have already been here and have the deep pockets to remain. So naturally the story has become about competition for market share.
There are many challenges to running an insurance agency in 2019. Those challenges vary from ongoing changes in the market place, to continually adapting coverage and forms, or the shifting economics of the insurance market as it begins to harden. The challenge of agency principles is to ensure we are providing the client with the best service, the best product while balancing their need for competitive pricing. The insurance market has evolved over many years in the industry. There is now an increased focus on data analytics and the use of modelling in presenting, placing, and even tracking accounts.
The insurance industry, after the trade market, is another sector where it is hard to predict the next big paradigm shift. Given the tentative stability and natural catastrophes, insurance companies often stand on a trembling ground and confront massive challenges, even when it comes to adopting seamless and intuitive digital solutions such as Artificial Intelligence in Insurance. According to PwC's 20th CEO survey conducted in 39 countries, the greatest concerns that loom over the 95 CEOs of the insurance sector today are the subdued premium rate, mild interest rates, shifting consumer behavior, slow economic growth, need for regulations and technological innovations and blazing market competition. Let's delve into the idea of introducing artificial intelligence in insurance, and how it impacts the current legacy processes. This shows how the insurance industry is struggling to comprehend and leverage digital advancements.
When it comes to digitization, the insurance space hasn't particularly been at the forefront of leading in technological innovation. And it's only fair as a colossal amount of regulations combined with thousands of users' sensitive information makes the insurance industry cautious in adopting new technologies. But, things are gradually changing! As per Genpact's AI 360 report, the adoption of artificial intelligence in insurance is rapidly increasing, with 87% of insurance carriers investing more than USD 5 million in AI-related technologies each year. Digital revolution is everywhere, increasingly transforming conventional business models and adopting digital solutions.
Technology is increasingly changing the way insurers operate. FREMONT, CA: The insurance industry is modernizing itself by equipping its arsenal with a large array of innovations. Technology has been transforming almost every dimension in the world, and insurance is certainly not an exception. The expectations of insurance customers are evolving continuously. In addition to this, the requirements of the high tech infrastructure and the operational ecosystem are also shifting in accordance with the modern days and demands.