With consumer expectations ever-expanding and the drive for greater efficiency relentless, it’s no surprise that personal lines carriers are leading the way in both digitalization and experimentation with new technologies. Perceived as a commodity price-driven business, the personal lines sector is known for its remarkably speedy adoption of AI and implementation of digital self service.
Insurers are scrambling to modify and develop new strategies to stay one step ahead of market disruptors by investing in InsureTechs. This investment allows for greater operational efficiency, improved market segmentation, diversification of R&D efforts, deeper understanding of customers, and expansions in self-service capabilities.
Additionally, core systems remain top of mind for insurers across the board. To establish a base for future capabilities, carriers are turning to core policy administration system replacement and enhancement projects. Such projects enable carriers to offer new products, utilize automated task generation, and streamline general core system processes. While many insurers have shifted to modern core systems, many large carriers with legacy mainframe systems are revisiting the way they address technology risks.
Top technology priorities for personal lines carriers include agent and customer portals, business intelligence, policy administration, rating, billing, and claims. Insurers are focusing on improving and building out mobile capabilities, omni-channel functionalities, billing flexibility, and claims management automation. For more on business and technology trends and challenges in the personal lines space, see our latest report on the topic.
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