The global insurance industry is laden with growing risk, changing customer preferences, evolving regulatory requirements, and an influx of new entrants. A volatile-interest-rate environment and economic implications from the pandemic outbreak are challenging the revenue streams and profitability. The rise in natural catastrophes is further pushing insurers to revisit the existing risk assessment models.
This necessitates accurate pricing, effective underwriting, omnichannel distribution, and faster claims processing. Making strategic shifts such as annual renewal to ongoing product offerings, changing the role of the agent as product educators, manual to algorithmic underwriting, and claims organizations focusing on risk prevention and mitigation, have become the need of the hour.
Amidst these challenges, the growing adoption of analytics-driven decision making by business functions is a clear opportunity. In our view, the smart use of AI and analytics can fuel the adoption and integration of external data ecosystems, automation, and business insights, enabling insurers to improve their growth and profitability.
