DIGITAL TRANSFORMATION
it was also hampering larger insurers in pursuing growth through M & As .
Paul Richmond , product manager at insurance software provider Novidea , tells us : “ Legacy systems have long been a major issue in the M & A landscape , as integrating different systems has previously proved nigh-on impossible , with some major brokers still operating on multiple , siloed legacy systems today following years of acquisitions , with the huge inefficiencies and issues that this brings .
“ Improvements in cloud-based technologies and digitalisation have largely removed this issue in the M & A space , enabling the swift integration of the acquired parties ' data to accelerate and enhance management information , whilst unlocking the efficiency gains shareholders expect to see .”
Are incumbents moving fast enough ? Richmond adds : “ Looking at the London Market speciality space , the speed at which incumbents have switched has often related to their legacy issues , as well as the need to align with Lloyd ’ s Blueprint Two , despite its setbacks . The understanding of the need for change is there , but much remains to do .
“ The processes and risks in the retail / SME space are usually less complex , and customers are also more expectant of change . Because of this , new entrants and forward-thinking firms are pushing the boundaries of what ’ s possible such as integrated self-service portals and other online solutions .”
Despite the progress already made towards digitisation , there is still much work left to do before the insurance industry can claim to be fully and truly digital-first .
“ COMPANIES SHOULD BE STRIVING TO MOVE AS MUCH HIGH-VOLUME , LOWER- COMPLEXITY BUSINESS TO A DIGITAL SELF- SERVICE MODEL ”
PAUL RICHMOND PRODUCT MANAGER , NOVIDEA
He continues : “ In the speciality market , where risks are more complex , the need for human interaction and relationships will remain for many years to come . Digital here is about providing better connectivity to trading partners and using real-time data to enable better risk and operational management .
“ In the retail and corporate markets , companies should be striving to move as much high-volume , lower-complexity business to a digital self-service model so they can focus on the high-net-worth and more complex risks , which the market manages so well through personal
72 July 2022