Few industries are as well positioned for the future as insurance. As Economist Impact research commissioned by Cognizant demonstrates, the industry, which was investing heavily in digital even before the pandemic, is full of companies that are recognizing strategic business value from their digital investments.
Yet challenges remain. Insurers find themselves beset by niche insurtech competitors that are unencumbered by technical debt; a sometimes-challenging regulatory environment to innovate within; and ever more demanding consumers who insist on shopping, buying, and servicing experiences for complex products at a level akin to a purchase of a new set of earbuds.
Here are insights on ways in which the insurance industry is future-ready—and where there is work to be done.
Respondents were asked to what extent the following technologies and methodologies already adopted by their business are delivering strategic value to their operations. (Percentage of respondents who advised each technology is, or is not, providing significant value to their business)
Source: Economist Impact Survey 2022
Figure 1
Respondents were asked what impact their company's technology improvement efforts had on the following business areas over the past year. (Percent of respondents who selected Somewhat positive, or Significant positive impact)
Response base: 250 senior insurance executives
Source: Economist Impact Survey 2022
Figure 2
Respondents were asked for which reasons their company is leveraging data. (Percent of respondents who selected each reason)
Response base: 250 senior insurance executives
Source: Economist Impact Survey 2022
Figure 3
Economist Impact research commissioned by Cognizant demonstrates an insurance industry amidst evolutionary change. While insurers will continue to face myriad choices in deciding the next step toward the future, winners will keep experience and data as their North Star to inform the choices they make.
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The views and opinions expressed in this report are those of Cognizant and do not necessarily reflect the view and policies of Economist Impact. Data presented is from an Economist Impact executive survey, commissioned by Cognizant, conducted in early 2022.
This article was written by Tim Queen, Head of Consulting in Cognizant’s Insurance practice and Eduardo Plastino, Director in Cognizant Research.