Summary
Insurance industry customer experience priorities are shifting as insurers look toward 2023 amid expectations of rebounding profits and premiums following the pandemic. Rising price and labour costs, mounting competition from insurtech challengers, and evolving workforce dynamics are forcing incumbent insurers to rethink how they compete on service quality and cost efficiency simultaneously.
Legacy technology remains a persistent constraint, slowing the pace at which insurers can modernise core processes and roll out new digital services that customers increasingly expect. At the same time, well-funded insurtech entrants are intensifying competition for market share, particularly in underserved segments and regions where insurance literacy remains comparatively low, adding pressure on margins across the industry. Claims handling, underwriting turnaround, and policy servicing remain the touchpoints where customers most notice the gap between legacy processes and newer, digitally native alternatives.
Against this backdrop, insurers are being pushed to pursue leaner, more agile operating models while simultaneously investing in more personalised, digitally native products that meet changing customer expectations. Talent retention and workforce reskilling add a further layer of complexity, as insurers compete with technology firms for the digital and data skills needed to execute this shift. Balancing cost discipline with meaningful innovation in product design and service delivery is emerging as the defining challenge for insurance leaders heading into the new year.
- Insurtech investment and deal volume reshaping competitive dynamics
- Legacy technology as a barrier to digital transformation in insurance
How should insurers balance cost discipline against the innovation needed to keep pace with insurtech competition?
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