A pipeline of digital reform and the promise of Blueprint Two have laid out ambitious goals to shake off the constraints of legacy systems to deliver a new era for risk management. But while the market is on the tip of significant change, industry-wide standardisation may still be some way off. Instead, it's down to individual IT leaders to decipher the reasons for and value of digitisation for their own firm, and why it's worth investing in.
Most IT leaders at brokers and managing agents are already busy building a digital foundation to drive operational efficiency, harness the power of data and solve compliance challenges. New capabilities offered by automation and AI are reshaping workflows and enabling quicker processes. Investment in insurance tech is growing across each of these areas - and the UK is leading the charge.
Research from WTW shows that London-based firms investing in technological changes achieved a six-point outperformance advantage over those that have been slower to innovate during the market's ongoing modernisation.1 Looking at the UK as a whole, 63% of insurance firms are now investing in AI and machine learning, compared to just 50% in the US.2
Meanwhile, the landscape of risk is growing rapidly in size and complexity. Client expectations are evolving, as are the needs of internal HR, sales, marketing and operational teams.
Market leaders are beginning to see the role of technology as a critical part of their strategic vision, not just a necessary support function. That puts significant opportunity in the hands of IT departments, as they have the potential to transform how business is done and position their firm as an industry leader before competitors can catch up.
In this report, we take a deep dive into the main challenges and perspectives held by several digital thought leaders within the Lloyd's market. Their insights should prove valuable for any insurance firm looking to review or update their processes and systems over the coming 12 months and beyond.
Insurance at the Digital Frontier
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