NEW YORK CITY — Insurance industry executives think it is essential to implement digital capabilities, but core systems are hindering progress, according to a new survey.
The survey, conducted by Bolt Solutions Inc., a digital distribution platform for the property-casualty (P-C) insurance industry, asked executives about the impact core systems have on P-C insurers’ ability to offer digital shopping and purchasing options to their customers. Respondents included key staff from over 60 leading P-C carriers nationwide, noted Bolt Solutions.
“Consumers are demanding digital capabilities to research and purchase insurance direct from carriers, but insurers continue to struggle to offer these capabilities,” said Eric Gewirtzman, CEO of Bolt Solutions. “For insurers to continue to grow and retain existing customers, they need a digital distribution platform with a rich market network that seamlessly connects to current back-office systems.”
Having a digital distribution platform can help position insurance carriers to leverage investments in existing systems as they prepare to replace core systems, while offering consumers the digital experience they expect, according to Bolt Solutions.
Not surprisingly, the survey revealed that the majority of respondents (88%) had seen demand from consumers and customers for digital engagement capabilities. Yet, nearly the same percentage — 82% — were not confident in their legacy systems’ ability to support the introduction of digital channels to market and sell their products.
Nearly three-quarters of respondents said they are actively researching ways to overcome the hurdles that prevent them from implementing digital capabilities.
Forty-one percent of respondents implemented a completely new system rather than a third-party distribution platform, but more than half of those that did (62%) reported they were only somewhat satisfied.
The survey found that the majority of carriers’ core systems are more than 10 years old. Insurers are not confident the systems, as they stand, are equipped to transition their company to meet consumer demands for digital engagement. However, carriers are actively pursuing options to offer digital capabilities while overcoming legacy hurdles.
Reprinted by permission of Standard Publishing Corp. © 2017.