New technologies and innovation will be crucial for insurers over the next decade

New technologies and innovation will be crucial to the success of insurers over the next decade, according to SMA.

The insurance industry analyst said organisations were struggling to understand the impact many new technologies would have in the sector over the next 3 to 5 years. However, as new challenges and opportunities are created, it added that new thinking and experimentation would be required if insurers wanted to compete in the future.

“Forward-thinking insurers are creating a clear vision of their definition of a ‘next-gen insurer’ – defining what they will look like 3, 5, and 10 years from now, and planning how they will respond to influencers within and outside the industry, the path they will take to get there, and the relationships that will fuel the journey,” said SMA chief digital officer Denise Garth.

“Many insurers are on the journey, but they are going at different speeds and focusing on the different priorities that will uniquely differentiate and position them as market leaders. Some are rethinking, reinventing, and reimagining the fundamentals of insurance, while others are retooling products, services, distribution, and processes.

“Regardless of the approach, becoming a next-gen insurer is a long-term, enterprise-wide endeavour. It’s important to think big even though actions may start small.”