The insurance industry is known for having traditional structures with many legacy systems in place. As technology develops and globalization charges on, digital solutions become more important but fewer than one third of insurers report success in transforming business practices.
EXL partnered with Harvard Business Review Analytics Services to survey a selection of over 800 global executives around the world. The study found that 89% of insurers believe that digital transformation is an important medium for client communication and 41% said that they plan to implement artificial intelligence (AI) within the next year. These findings were published in the recent report, ‘Digital intelligence: achieving the promise of digital insurance.’
Senior Vice President at EXL, Nigel EDWARDS spoke to Insurance Times about the challenges facing insurers.
“Insurance policies are difficult to engage with; it becomes a trial having to fill out lots of forms manually, having to go through the emotional cycle of revealing many personal attributes. Therefore, customer engagement has been low because it’s a one-time event and that hasn’t driven a culture of digitalization.” EDWARDS added that motor premiums in the UK are lower than last year, and that product differentiation and customer experience were key to increasing profitability.