A report published by US firm Global IQX on automation in the insurance industry reveals that 25% of insurers have automated their underwriting practices, half have automated claims systems, and 65% expect to spend more on robotic process automation this year.
Author of the report, Mike de Waal, says 2020 was marked by a “…drastic redirection of insurance industry resources”, 2021 saw the introduction of greater digitisation, and this year will see even more reliance on what he calls “hyper-personalisation and data-driven ecosystems”.
However, he says consumers are skeptical of the move toward technology and automation. He points to a study carried out by Accenture which concluded that just 12% of insurance consumers trust automated systems when making a claim.
De Waal advises that as insurers increase their use of technology that they must provide more points of contact to customers to improve trust.
“The pandemic changed how insurance agents communicate with clients and how clients can register for insurance products,” he says. “Insurers need to increase their digital capabilities to communicate with clients remotely.”
Download the full report here.