Denver, CO – Valen Analytics®, an Insurity company, recently published its 2018 Outlook Report, which chronicles the deepening divide between insurance companies adopting incremental technological advances and those that believe it’s time to disrupt the insurance ecosystem.
In the fifth iteration of the annual report, the company predicts how the growing split between insurers will impact the industry, as carriers of all sizes embrace technology, albeit with very different roadmaps. Valen incorporates industry studies and proprietary research to analyze trends, opportunities, and shortfalls in current insurer approaches, while emphasizing how the industry-wide mindset shift in 2017 paved the way to a new insurance ecosystem. Today, insurers are incorporating data-driven decision making and customer engagement initiatives to pull away from the traditional approach.
The key findings of the report identify how the split in innovation adoption is creating a new framework for the way insurers and reinsurers define performance and success metrics in P/C insurance. Insurers now have unprecedented access to information about the importance of risk quality, leading indicators of profitability, and concrete steps insurers can take to be certain they’re winning the best market share.
In addition, the 2018 Outlook Report includes:
- The plateau of data and predictive analytics industry adoption, and the exacerbation of actuaries and underwriters being at odds over pricing, driven by many factors.
- The divide between two prominent viewpoints regarding the industry’s need to invest in and implement InsurTech solutions, and how customer experience and claims handling satisfaction is the tip of the iceberg for long-term disruption.
- How reinsurance companies are accelerating the pace of innovation and even spearheading InsurTech advancement.
- How primary and reinsurance carriers understand their need to deploy capital and improve returns by leveraging predictive analytics and data. 79% of insurers believe new functionality and features will make their teams more efficient and effective in the long run, yet 55% of front-line employees were perceived as somewhat or highly resistant when new technologies were rolled out.
- The reasons insurers who have adopted data-driven practices are finding it difficult to attract data and analytics talent to the field.
“Two years ago, we identified a crossroads moment for insurance and highlighted InsurTech innovation as something carriers were embracing more fully,” said Dax Craig, CEO and president of Valen Analytics. “Today, we see the trend creating a fundamental divide between executives who are looking to create incremental improvements, and those who believe a fundamental change is necessary.”
The 2018 Outlook Report, along with several complementary resources including the 2017 underwriting survey results, can be found in Valen’s Resource Center at www.valen.com. A webinar detailing the findings of the Outlook report will take place in Mid-January.