The insurance market is losing ground to insurtech startups and must focus on digital business to stay competitive.
In its UK Insurance Underwriting Digitisation Study 2017, research firm LexisNexis revealed the opinions of 107 insurance professionals, most of whom spend more than 80 per cent of their time pricing and underwriting policies.
The study examined the views of personal lines motor and home insurers on issues such as whether digitisation will create stronger business opportunities, and how their organisations are embracing new technology.
- Just 4 per cent of personal lines insurers say their businesses are entirely or almost entirely digital, while 92 per cent recognise that digitisation has allowed new insurance providers to emerge and disrupt the market
- 31 per cent of motor insurers and 25 per cent of home insurers are using mostly manual underwriting processes
- 78 per cent believe digitisation is valuable for improved speed to market for new products
- 64 per cent consider policy history data as an important way to improve the customer journey
The need for speed