Life insurance sector catching up in terms of innovation
Recent flat sales, a need to generate returns on capital and external pressures such as regulations, customer behaviours, and market dynamics, have forced the life insurance sector to drive innovation and technology adoption, according to a new study by Conning.
"Improvements in customer and agent interfaces, automated underwriting, data mining and other techniques are starting to create changes in the life insurance industry," said Terence Martin, director, insurance research at Conning. "Innovative products are favourable for continued growth, but in order to remain competitive, insurers are going to need to implement new technologies to be more engaged with their customers and deliver relevant products, while still controlling expenses and maintaining their financial stability."
The Conning study, InsurTech and Other Innovation Drivers: Life Insurance Starts to Catch Up examines the external and internal drivers of innovation, and how those drivers have resulted in new products, innovations in distribution, and internal processes. It examines how technology is enabling life insurers to improve their customer experience, and how insurers are looking to create a more holistic relationship with their customers to broaden the appeal of their products. It also explores the newest technologies still in development and how they may become disruptors.
"Emerging technology has the potential to become a total game changer," said Steve Webersen, head of insurance research at Conning. "Technology enables life insurers to reach customers in new ways and can remove some of the traditional stumbling blocks such as long and cumbersome underwriting processes."
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