How to Overcome the Barriers to Adopting Advanced Technology

Insurers must adapt to stay competitive and relevant in today’s rapidly evolving digital landscape. Yet, a recent report on digital modernization in the insurance industry shows that legacy systems and infrastructures frustrate technology adoption.

This global report was conducted by EPAM in partnership with London Research. The survey included 200 insurance executives from various providers, including both commercial and consumer lines.

The report provides valuable insights into the priorities of industry executives, offering practical strategies for insurers to overcome the challenges of legacy systems and infrastructures. By addressing these obstacles, insurers can stay ahead of the competition through the unhindered implementation of emerging and relevant technologies – namely, Generative Artificial Intelligence (Gen AI).  

Potential Applications of Gen AI in Different Lines of Insurance

In recent years, the pace of technological advancement has accelerated, from the birth of the Internet and fast mobile data to the public cloud and the modern app stack. Now, Gen AI has the possibility of unlocking the value of an insurance company’s data estate to tackle common insurance challenges and open further opportunities.

In the consumer insurance industry, the potential of Gen AI includes supporting customer self-service, allowing customers to receive new quotes, endorsements and renewals without interacting with a call center agent. Advanced chatbots can advise the customer and automatically process their identity and contact details from their driver’s license. With voice interaction widely expected to arrive in the near term, the concept of a zero-key quote becomes a reality on the horizon.

Other important use cases within consumer insurance include First Notification of Loss (FNOL) guided registration. In this scenario, the technology could automate tasks ranging from customer and policy identification to coverage checks to initial damage assessment and even next-best actions and full claims processing automation.

In commercial lines of insurance, Gen AI could streamline submission processing and augment underwriting support, including ingestion, risk summation, deep risk analysis, renewal comparisons, suggested wordings and so forth. This technology could also complete broker risk research, quote sheet drafting, common query-loop handling and premium invoice validation. However, in reality, almost half (45%) of insurance companies surveyed said legacy technology systems and infrastructure were the most significant barriers to adopting digital tools and new working methods. Also, 34% admitted that legacy technology stopped them from quickly getting new products and services to market.

Until insurance companies, whether consumer or commercial, can move beyond legacy systems and infrastructure, the possible business benefits that Gen AI may drive will remain out of reach.

Read the full article here.

Access the Digital Modernization in the Insurance Industry report here.

Learn how EPAM can help insurers engineer the future and leverage Gen AI here.