MGA and insurer concerns over pace of digital transformation remain ‘prevelant’

Concerns about the pace of digital transformation within the insurance industry remain “prevalent” among insurers and managing general agents (MGAs).

That was according to a poll by insurance software firm RDT, which found that a third (31%) of technology professionals at insurers and MGAs rated the current state of digital adoption as either poor or very poor.

And only 3% considered the industry’s digital transformation as excellent.

A total of 91 entrants from technology teams at insurers and MGAs were surveyed between 23 May to 7 June 2024. 

”Past transformation projects have shown that updating the insurer platforms can be labour-intensive and costly,” RDT said.

”And today, insurers face the additional challenge of a difficult economy in the rapid evolution towards digital-first, real-time products.

”It’s not enough to adopt digital tools. Insurers need to fully integrate digital methodologies into their operations.”

Low code

However, the survey also found that more than half (54%) of insurers have been implementing low code interfaces to automate customer journeys.

Additionally, over a third (36%) of insurers surveyed reported an increase in technology investment over the past year.

Joe O’Connor, deputy chief executive at RDT, said: “We are encouraged by the shift among many from project-based transformations to continuous updates using low-code interfaces. Insurers are now integrating new methodologies and practices to cultivate a culture of continuous learning and innovation.

”However, it is essential for insurers to begin by asking the right questions about how to add more value for customers and enhance the claims experience. The emphasis should be on leveraging automation and data to drive valuable outcomes. The key is to be customer-focused, not just tech-focused.”