Insurance Industry in Flux: Key Findings from IBM’s Survey
The New Reality
Last year was an unusual one for every industry, and not least insurance. Even if carriers weren’t dealing with all the disruptions of the pandemic, they’d still have faced historic levels of natural disasters and generational economic shifts throwing their business into flux.
More Agile Insurers
Over the next two to three years, the insurance executives surveyed placed the ability to act decisively ahead of such considerations as improving data transparency, securing data systems, and establishing greater accountability. 56% of insurance executives ranked agility and flexibility in their operations as a top priority.
Insurance Everywhere
As insurers seek a digital advantage for their still very real-world business, sensors, and the ability to connect and monitor them, have become a top priority. At least three-quarters placed a priority on IoT and cloud. The survey asked which technologies will most help them deliver the results they need over the next 2–3 years, and 87% chose IoT initiatives, followed by 77% selecting cloud.
Empowered Employees
Compared to other industries, where fewer than half stressed work-life balance, this is obviously a high priority for carriers. 63% of executives said work-life balance was their top employee engagement issue. Fostering a sense of belonging and providing tools to help employees cope with both a fast-changing industry and world, are increasingly crucial to success.
The Risks of Cybersecurity
While insurance executives placed cyber risk as the top challenge they could face over the next two to three years, less than half were confident they had the technology to deal with it. Only 43% of insurance executives believe technology can make an impact on cyberthreats. Securing this vital information will only grow in importance.
Conclusion
The insurance industry is at a crossroads, with carriers seeking to adapt to a rapidly changing market. Agility, innovation, and empowered employees will be key to success. As insurers navigate the challenges of cybersecurity, IoT, and cloud, they must prioritize finding the best solutions that allow their apps and claims systems to run uninterrupted.
Frequently Asked Questions
Q: What is the top priority for insurance executives in terms of operations?
A: Agility and flexibility in operations, with 56% of executives ranking it as a top priority.
Q: What technologies do insurance executives prioritize?
A: IoT initiatives (87%), cloud (77%), and AI (more than half expect it to become one of their core technologies over the next two to three years).
Q: What is the top employee engagement issue for insurance executives?
A: Work-life balance, with 63% of executives citing it as their top concern.
Q: How confident are insurance executives in their ability to deal with cyber threats?
A: Only 43% of insurance executives believe technology can make an impact on cyberthreats.
