Navigating the Pace of Change in P&C Insurance
Compared to other industries, insurance has been slow to adopt new technology for several decades. Despite the availability of modern solutions delivered on software-as-a-service platforms, many carriers still rely on legacy, on-premises core systems for their most critical business functions. Carriers that find themselves in this unenviable position are challenged to build supporting ecosystems that allow them to tap into new tools and services; are unable to put data from existing and emerging sources to work as competitive assets; and struggle to attract and retain innovative thinkers in their workforces due to dependencies on outdated, decreasingly-common skill sets. Regardless of lines of business, financial stability, or established reputation, carriers that are unable to keep up with the pace of change within and outside of the insurance industry face an unprecedented challenge keeping up with intensifying customer expectations.
External forces are necessitating fundamental changes to the way insurers do business. To measure the industry’s readiness to take on this challenge, Duck Creek Technologies commissioned Celent to survey carriers’ stances on the pace of change in insurance and the drivers causing this transformation. The results reveal that the P&C industry is undergoing only moderate acceleration of change, despite consumers’ expectations of radical improvements. Individual carriers—from regional insurers to multi-line Tier-1 carriers—have largely struggled to keep pace with demands placed on them by the broader marketplace.