In 2022, composite insurers are stepping up their digitalisation and transformation efforts. However, in doing so, they are encountering numerous and diverse challenges.
After the COVID 19 crisis, technological change is the third biggest concern cited by insurance managers as a threat to future growth, with cyber threats coming a close second. Insurers fear not only that their market peers will overtake them in the race for technological innovation, but also that dishonest actors could exploit new technologies leaving them open to risk and significant cost.
Consumer research has found that most policyholders prefer to communicate with insurers through digital channels. However 68% of insurance leaders believe that the use of digital technologies leads to more risk and fraud, and therefore higher costs.