The COVID-19 pandemic has highlighted the pressing need for the insurance industry to adopt advanced analytics. The conventional approaches and manual methods are proving to be not enough in the face of increasing complexity and uncertainty.
“…caution is still warranted as the ultimate result of many COVID-19 court cases remains unknown, and third-party investors are purchasing stakes in the litigation, which could contribute to social inflation. The war in Ukraine has added to reserve risk, as losses remain highly uncertain in lines that include aviation, political risk, cyber and D&O.”
Swiss Re, Reserving: higher uncertainty puts adequacy in the spotlight
Insurers looking to more sophisticated tools and methodologies to evaluate and manage risks effectively will need the combination of a customer-centric core policy admin platform. And the integration flexibility to quickly adopt the leading edge tools of tomorrow to remain competitive.
By harnessing the power of data and analytics, insurers can gain valuable insights to make better-informed decisions and adapt swiftly to changing market dynamics. But only if they have the insurance technology platform that can change swiftly.
It’s impossible to ignore the problematic issues benefits insurers will have to work with if they continue using modern legacy core systems. They simply weren’t designed with the expectation that the insurance industry would evolve as it has, so maintaining them is unsustainable.
EIS, ‘5 Factors Affecting System Modernization in the Benefits Market’
This transition to advanced analytics has become paramount in driving operational efficiency, identifying and mitigating risks, and ultimately, ensuring long-term business success in the insurance industry.
Sources:
- Carrier Management, Emily Holbrook, ‘Pandemic Accelerates Need for Advanced Analytics in the Insurance Industry‘
- Swiss Re, James Finucane, Arnaud Vanolli, ‘Reserving: higher uncertainty puts adequacy in the spotlight‘
- EIS, ‘5 Factors Affecting System Modernization in the Benefits Market‘