Image courtesy of DXC Connect Insurance Community
Industry Overview
The insurance industry is undergoing a period of significant transformation driven by technological advancements. Consumers are increasingly demanding a seamless and digital experience, pressuring insurance service providers to modernize their operations. This shift is driving the need for solutions that address core insurance needs, including policy administration, claims processing, and data management. Intelligent automation of workflows and business processes using emerging technologies, such as AI and cloud is accelerating efficiencies and transforming the way the insurance industry operates. Frost & Sullivan’s research finds the key trends driving innovation in this sector as follows [1]:
Next-Generation Technologies Fuels Innovation: The use of AI, machine learning, and cloud computing are becoming an integral part of digital transformation in the insurance industry. These technologies offer intelligence automation, scalability to adapt to changing demands, and fuelling new service innovation.
Digital Platform to Improve Customer Experience: As the proliferation of mobile applications gains traction in the insurance industry, the need for enhancing mobile-specific CX is growing. Open API acts as a catalyst that drives the development of seamless integration between core systems and mobile interfaces. This technology streamlines customer interaction such as real-time policy access or digital claims.
Prioritizing Security Approach for Digital Transformation: The comprehensive suite of security solutions that address the full spectrum of cyber risks is essential in the digital transformation journey. Integrating security throughout the entire technology stack, from threat detection to security operations, will ensure robust security measurement.
Industry Challenge
Frost & Sullivan’s research indicates that enterprises in the financial service industry are keen to embark on their digital transformation journey to increase efficiency and productivity. However, digital transformation is a complex process, and several challenges exist. Legacy systems can hinder the adoption of modern solutions, and modernization can be costly. Finding the right technology partners that can support the implementation of innovative technologies and help in developing use cases will be critical for the success of business modernization initiatives. This partner should have the capabilities to support implementation, potentially lower costs, provide a holistic transformation perspective, and assist in developing innovations to unlock new growth opportunities.
Industry Outlook
The continuous advancements in the next-generation technologies further drive the adoption of modern technology in the insurance industry. While enterprises will embrace change, technology providers should be prepared to support enterprises through the transformation. Evolving customer expectations increasingly drive enterprises to seek sophisticated digital transformation platforms that can help them maintain a competitive edge in today’s hyperconnected world.
Successful technology providers will ensure that they have technology assets encompassing a robust and adaptable system architecture. DXC recognizes this imperative, emphasizing its commitment to developing solutions that leverage AI and emerging technologies to replace traditional insurance ecosystems with its pioneering distributed, cloud-based experience delivery platform designed to adapt to the changing needs of the digital insurance landscape. With customers such as Great Eastern and Allianz who are working with DXC to power their digital initiatives, the company is well-positioned as an industry innovator.
If you are interested in some more information on Frost & Sullivan’s research on the financial technology market, please click here.
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