Innovation in technology, the growing use and availability of data, and changing customer expectations are all putting pressure on the insurance industry to transform – and fast. Alongside other forces, like the competition for new talent, product innovation, and regulatory influence, carriers are having to figure out how to navigate a wave of changes, according to Celent’s 2019 Pace of Change report, which was presented at Duck Creek Technologies’ annual Formation meeting.
To feel out property and casualty companies’ progress against six key elements of change, Celent conducted a survey of these firms across the globe, and determined that the industry overall is taking steps to improve speed to market, though there are bumps along the road to transformation when it comes to other factors.
One of the major obstacles is customer expectations, and how quickly they’re changing because of technology titans.
“When you look at customer expectations, we all know that there are truly profound companies that are reshaping what the expectation is,” said Michael Jackowski, CEO of Duck Creek, during the opening keynote of Formation ’19. He pointed to the ‘Buy Now’ button on Amazon and the ‘Next Episode’ button on Netflix that mean consumers can have products and services delivered almost instantly. Jackowski added that ease of purchase is “table stakes, and now the new thing we’re striving for is transparency.”