Medical malpractice insurers face a unique set of business and technology issues. The sector is seeing continued consolidation and intense competition; the top 20 insurers now control 70% of premiums according to A.M. Best. Carriers are also facing a years-long decline of direct written premium. Compounding these market pressures are legacy environments that impede insurers’ ability to engage clients.
Insurers in this sector are consequently turning their attention to enabling greater efficiency in operating environments and improving customer service and engagement. They are making investments in digital engagement systems, data and analytics to better understand customer interactions, and modern, flexible core systems.
Emerging technology is also finding its way over to medical malpractice insurance. AI can be applied to application intake and unstructured data analysis to automate paper-intense processes. Robotic process automation may also provide some short-term relief. Integration between legacy and modern applications can be painful, and RPA can help overcome siloed data transfer between systems.
Future success for medical malpractice insurers will be enabled largely through investments in established and emerging technologies. These technology investments can help insurers profitably serve clients and ease the burden of current financial and operational challenges.
More information on trends and challenges in this space is available in Novarica’s recent report, Medical Malpractice Insurance: Overview and Key Issues.
Add new comment