Driving Next-Gen Insurance: How CIOs Can Lead in the Digital-First Era

Blog

September 30, 2021

TABLE OF CONTENTS

Digital Disruption in Insurance

According to Levvel Research, traditional insurers have been slower to adopt modern technologies, even in the wake of the COVID-19 pandemic. Slow adoption has made it difficult for many insurers to stay competitive and meet the evolving needs of the insured.

Levvel’s recent Insurance Technology Executive Report found that insurers want to innovate but are being held back by concerns such as security, tech debt, and reliance on legacy technologies. Additionally, the insurtech market is biting at the heels of traditional insurers, creating more urgency when it comes to adopting modern tech. By better understanding these areas of improvement, insurance CIOs can drive traditional companies—and traditional thinking—toward the digital future of insurance.

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The Insurance CIO’s Guide to Leading in the Digital-First Era

Hear from Levvel experts and Rob Galbraith, Bestselling Author at Insurance Nerds and former Director of Underwriting Research at USAA, on how to best prepare and support a technology approach that meets evolving insured’s expectations.

Top Tech Challenges in Insurance

The need for all types of insurers to modernize is critical. However, many insurers are held back by technology challenges, which are preventing them from jumping head-first into the digital-first era. Today’s insurers face challenges that include:

  • Security
  • Personalization
  • Automation
  • Cloud/APIs

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Caption: Insurers top IT challenge is security. The amount of data that insurers collect can make them targets to hackers. Rightfully, personal and sensitive data protection is critical to the success of global insurers.

But with the insurance industry heavily reliant on IT systems to support core applications, it may come as no surprise that “maintaining legacy systems” follows closely behind at 40% in Figure 1. But what does success look like in the digital world of insurance, and how is it being achieved?

The Evolution of Insurtech

Until recently, there wasn’t an urgent need for insurers to innovate or implement new technologies. Many consumers find insurance to be a necessity, and there weren’t many disruptors in the space. But with the emergence of the insurtech market, the industry has seen a drastic shift toward digitization.

Now with fierce competition, many insurers have found it difficult to stay competitive and cutting edge. Traditional insurers have struggled to keep pace with the insurtech firms that are offering cheaper services, unique products, and fast-paced business models. Perhaps for the first time, modern technology is impacting every aspect of the insurance value chain.

With new technology comes new business models focused on better security, personalization, automation, and Cloud/APIs—solving many of the top tech challenges that insurers are currently facing. It’s important for insurance CIOs to examine how investing in technology can help them meet customer demand, as well as stay competitive in this new digital age.

Insurance Strategy for the Digital-First Era

The end goal is for insurers to better understand and meet customer expectations that have been continually transformed by modern technology. The new world of quick delivery, tailored services, and a “one-stop-shop” approach are driving innovation in this space. Luckily, many insurers are starting to adopt modern capabilities that help meet high-level, strategic initiatives within their businesses.

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Caption: Many insurance CIOs are turning their attention toward modern technology to more efficiently meet customer needs.

While the concept of product or digital teams may be new to most insurers, insurance CIOs should examine how product and IT teams can work together to create the digital experience many of their customers desire.

Embracing the Digital-First Era

What has been traditionally labeled as IT has changed, and insurance CIOs should designate who takes the lead on these initiatives, whether it be IT, digital, or innovation teams.

As the insurance industry—and its challenges—continue to evolve, it’s important for CIOs to take the leap toward modernization in order to compete in the digital landscape.

Insurers can better tackle the biggest tech challenges in insurance today by embracing change, especially when it comes to evolving customer expectations. With insurtechs at the forefront of the digital era, insurers can keep pace by shifting their focus to next-generation technologies.

Authored By

David Antoline, Managing Director, Commercial

David Antoline

Managing Director, Commercial, Levvel

Alex Bova, Digital Content Writer, Levvel

Alexandria Bova

Digital Content Writer

Meet our Experts

David Antoline, Managing Director, Commercial

David Antoline

Managing Director, Commercial, Levvel

Throughout his 15-year international career, David has held senior leadership positions in both startups and top tech organizations alike. Prior to joining Levvel, David's team built what has become the de facto enterprise software platform within the collegiate athletics market. As MD, Commercial, David applies a dedicated customer focus to Levvel's world-class delivery model and product offerings.

Alex Bova, Digital Content Writer, Levvel

Alexandria Bova

Digital Content Writer

Alexandria Bova is the Digital Content Writer here at Levvel. With over seven years of experience in the editorial and marketing space, Alex is passionate about creating tech and finance content that is digestible to the average consumer. With SEO and industry trends in mind, her goal is to create impactful content that helps reimagine the relationship between people and technology. When not writing, Alex is a huge foodie and is always on the hunt for the best coffee. In her free time, you can catch her scouring the shelves of used bookstores, collecting typewriters, planning her next big trip, or persuading others to share in her love for the Oxford comma.

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