What trends and developments can the Australian Insurance industry expect in 2023?
2023 will see insurers leveraging on the momentum they have gained in 2022 to keep a continual innovation-focused culture and to make customer-centricity the core of the sector’s standard operating model.
Shifts from reacting to regulators and other industry overseers’ requirements to more proactively anticipating and meeting distributor and policyholder expectations; and broadening their historical focus from risk and cost reduction to prioritise talent and the right technology adoption.
This insight will explore what trends and developments the Australian Insurance industry will expect in 2023 and how the contingent workforce can help insurers increase ROI and achieve key innovation.
Goodbye legacy, hello speedy new product launches.
It goes without saying that the modern insurance sector places a premium on speed to market. Business executives will be focused on gaining first-mover advantage with new product lines in 2023 as they seek to stay competitive in a shifting industry. The days of launching legacy systems that took years to reach the market are long gone. Customer centricity is key and requires new product launches to be swift, tested, and compliant with all regulatory requirements. Insurers will aim to achieve a faster ROI by bringing new products to market swiftly in 2023.
Technological advances still need people.
Insurers can meet consumer expectations for choice and convenience and maintain competitiveness in this evolving industry by modernising out-of-date legacy technologies. Getting first mover advantage, improving customer retention, and quickly delivering the diverse lines of products and services today’s customers expect. Insurers can start offering embedded products by leveraging open APIs that enable cross-industry collaborations and seamless ecosystems.
As much as the right technology is important, the appropriate human eye and governance behind it is even more vital. Having the right staff who not only understand the importance of governance and data privacy, but who can also achieve buy-in and cohesive working strategies with multiple other departments are essential qualities that only physical human resources can provide. To remain on top of these and future changes, governance leaders within businesses need to work with stakeholders from across their respective companies to ensure nothing is overlooked, whilst also ensuring they are up-to-speed with upcoming additions or alterations to the regulatory landscape.
Weather-related losses are still a key issue for insurers.
Insurers will be forced to increase expenses passed on to consumers due to rising inflation and weather-related losses. As consumers tighten their financial strings, we anticipate those customers will fight back and that policy lapses will rise this year, climbing by up to 20%. Insurers will need to review pressure spots that require attention in their complaint and collections departments and ensure that enough support is being given to vulnerable customers who have been impacted by adverse weather conditions. Getting the right talent to deal with vulnerable customers in an empathic and efficient manner will be key in avoiding reputational damage and following consumer protection regulations.
How can Momenta assist you 2023?
Depending on the needs of the project, Momenta can scale resource requirements up or down as necessary.
With more than 30 years of global experience within the Financial Services industry you can be assured of our ability to provide a complete cost-effective solution or specific components to compliment your current capabilities and skill set.
Our team members are seasoned, client-focused experts with the sensitivity and empathy necessary to manage claims and understand how businesses and people alike have been affected by natural disasters.
If your business has been impacted by additional regulatory or compliance pressures and needs additional staffing support in your claims handling and risk/compliance departments, speak to us to see how we can help in supplying experienced and effective members to your team.
2023 Insurance Outlook Global Insurance Industry at a Crossroads to Shaping Long-Term Success a Report from the Deloitte Center for Financial Services. 3 Jan. 2023.
“Business Insurance Market Conditions Report — 2023 Outlook.” Ajg.com, 23 Nov. 2022, www.ajg.com/au/news-and-insights/2022/nov/business-insurance-market-conditions-report-2023-outlook/. Accessed 6 Jan. 2023.
Smith, Ryan. “Revealed – Insurers’ Main Tech Priorities for 2023.” Www.insurancebusinessmag.com, 23 Jan. 2023, www.insurancebusinessmag.com/uk/news/technology/revealed–insurers-main-tech-priorities-for-2023-432303.aspx. Accessed 24 Jan. 2023.