Carriers are prioritizing profitability, especially when it comes to fostering innovation, according to Insurance Operations in a Changing Industry, a study published today by Earnix, the global provider of intelligent, SaaS solutions for insurers and banks.
The survey of 400 insurance executives “provides insight into how carriers can compete and win in the rapidly changing industry.”
Among the key findings are “that 48 percent of participants reported they are prioritizing profitability, as opposed to 13 percent who stated growth metrics take precedence.”
With nearly four times as many executives “elevating profit margins, it’s not surprising that 28 percent of C-suite executives reported ‘dealing with macroeconomic factors,’ is a top focus. Economic impacts of inflation, interest rates, supply chain breakdown, and similar factors will persist.” To succeed, carriers must “adopt new technology.”
Innovative approaches designed to “create more effective rating and pricing strategies will enable insurers to thrive today and tomorrow.”
The insurance industry is slow “to adopt new technology.”
Still, an average of 38 percent of participants “reported that changing industry regulations will require them to consider new tools or technology like AI, machine learning, personalization, dynamic pricing, and predictive analytics.” Nearly all respondents (98 percent) “reported that they plan to use predictive modeling.” This is in response “to accelerating personalization strategies.”
Aaron Wright, Director of Strategy, Earnix said:
“Leveraging advanced data analytics capabilities and advanced technologies are crucial for insurers to implement predictive modeling, dynamic pricing, and other critical use cases, allowing them to survive and thrive in this period of upheaval.”
As noted in the update, the survey, “conducted by Earnix and Market Strategy Group, LLC in June 2023 included 400 global insurance executives from the United States, Canada, Europe, and Australia. 321 respondents were from carriers with less than 20,000 employees and 79 respondents were from insurance companies with more than 20,000 employees. Respondents spanned C-level, IT, analytics, product, and underwriting roles.”
As mentioned in the announcement, Earnix claims it is “the premier provider of mission-critical, cloud-based intelligent solutions across pricing, rating, underwriting, and product personalization.”
These fully integrated solutions “provide ultra-fast ROI and are designed to transform how global insurers and banks are run by unlocking value across all facets of the business.”
It has been innovating “for insurers and banks since 2001 with customers in over 35 countries across six continents and offices in the Americas, Europe, Asia Pacific, and Israel.”