The insurance industry: The need for digitization

The insurance industry sees its business prospects in the coming year as even worse than two years ago, according to a survey by Forsa. This isn’t just because it’s becoming more and more difficult to get products to the market. The industry is looking for solutions to meet increasing demands related to compliance.

 

The EU is holding the reins

The new EU broker guidelines IDD und Solvency II, a project of the EU Commission aimed at fundamental reform of insurance regulatory law, is placing the insurance industry under pressure to act. Insurers themselves have already experienced short-term effects of the new requirements, and they’re also beginning to influence broker sales.

 

Whenever compliance management requirements increase, regulatory and documentation regulations become stricter. 86 percent of all insurers, and 77 percent of all brokers told Forsa that they saw these issues as not just one of many challenges on the horizon, but rather the key challenge facing their companies.

 

High level of acceptance for digital processes

The silver lining in this survey was that the industry proved highly open to digitization, placing its hopes in automation and other technologies. Respondents saw optimizing IT as the second most important future task besides compliance. 83 percent of insurers and 77 percent of brokers felt digitizing business processes was important.

 

Recognizing a need for investment

Another positive result for suppliers of automation tools and workflow systems is that insurers plan to make a quarter of their all investments up to 2018 in IT. Even brokers surveyed estimated they would invest 18 percent of resources there, and larger broker firms estimated even higher, at 20 percent.

 

This result is more than welcome – what’s better than a customer who’s recognized he has a problem to solve? Well, one thing: a customer with the budgets to solve that problem. All customers need is the right IT solution, a solution they’ll find at easys.de.