Adopting new technologies are hard for the insurance companies. The industry is held back by legacy systems and business models. They also lack the technology talent, that is required to speed up innovation. According to Deloitte, just 4% of millennials want to work in insurance. Insurtech start-ups are focusing on developing software for the sector. But still, the gap between these fledgling firms and traditional insurance companies is growing further.
The impact of Covid-19 on the sector is one of the factors to exacerbating the problem. The customer demand for more digital products and services are growing higher. Millennial and Gen Z workers are confident in using digital tools. Insurance firms must find ways to tap into this talent pool. Digitalising their operations and competing with the emerging start-ups in the sector are some steps. These individuals can act as digital champions by helping them to embed the latest technologies. Some technologies that could drive widespread transformation of the sector are such as, the highly personalised insurance policies via IoT and social media, paperless records, workflow automation via Machine Learning and RPA, AI-powered chatbots, blockchain etc.,
If insurance companies do not start investing in digital innovation they would risk falling. By giving ambitious digital natives license to research and embedding new technologies, they can transform their operations. This will also help them in competing with new market entrants. Technology is driving several trends in insurance, like the personalisation, automation and more accurate risk assessments. By getting the digital adoption right, the insurers will benefit from cost reduction and better communication with their customers. The next generation of workers will change this drive by shifting the perception of insurers.