Insurance

Industry Challenges

Carriers need to shift from paper to digital – Up until the last 10-15 years, paper has been the predominant way insurance companies have completed applications and managed policyholder servicing. Even today, some of the information collected from policyholders is on paper and requires a wet signature. To create the most value from their data, carriers must look at in-force and new data sources.

Using data to personalize products for different customers is challenging due to a complex regulatory landscape – It is not easy to personalize insurance products for a variety of reasons. First, the industry is highly regulated so the ability to customize pricing is very limited. Every time you have a pricing change you need to have a state by state approval. Personalization of coverage is on the radar for every big insurance carrier. Usage based insurance is allowing this to an extent, but if we talk about ad hoc personalization for different risks we are still a few years out. There are regulatory and data issues associated with this that the insurance industry still needs to solve.