At Legerity’s October IFRS17 webinar we asked an audience of insurance specialists the extent to which their organisation is acting on Digital Transformation.
Digital transformation and technology innovation are driving huge change across the insurance industry. From customer experience, biometrics, AI, chatbots, machine learning, through to leveraging cloud computing.
This combined with the need to deliver IFRS17 means the impact on finance and actuarial is significant.
Legerity were looking to find out whether the audience were; already running projects, had plans in place to commence projects, had digital transformation on the agenda to consider over the next 12 months or whether they had no plans at this stage.
Already running projects
The majority of the insurers asked (52%) are already running digital transformation projects. This response was great to see and isn’t really surprising given our knowledge of the market. A lot of digital transformation projects are currently being driven by client-facing programs to improve customer’s experiences, choice of products, plus channels and time to purchase.
However, it is critical that the back office, including finance and actuarial, is ready for digital transformation and the high rate of change that it will deliver across the organisation.
To be ready and to avoid costly and lengthy change programs, insurers are now investing in transformative back-office platforms that deliver both short term needs and long-term gains. The choices firms make now will affect the business for the next 15 to 20 years, so there is a need to achieve compliance goals such as IFRS17, whilst future-proofing the back-office against further industry innovations and regulations.
Starting to investigate use cases or solutions
33% of the audience were starting to investigate use cases or solutions.
The digital insurance industry moves at such a pace that advancements, in both the front and back office, are necessary to remain competitive. Investigating use cases and solutions shows progress, but for projects to be most effective, they will need to be time-boxed.
With time-sensitive regulations such as IFRS17, firms may fail to achieve compliance should they wait for the rest of the market to move first.
Planning to do so in the next 12 months
A smaller percentage of the audience (14%) are planning to act in the next 12 months. Even if there are no projects running at the moment, we are encouraged to see that there are transformation plans afoot and proposed dates in the calendar.
No current plans
As we would expect and given the audience it was good to see that 0% of those polled planned on doing nothing at all. This is great news. Digital transformation and, more specifically, IFRS 17 compliance, is an industry-wide opportunity to deliver significant business benefits.
Jeremy Wood, Legerity CEO and Founder commented:
“Firms are already embracing digital transformation. The use of telematic devices is a great example of tech that is innovative and transformative but no longer new. So, we are seeing transformative projects starting to happen, and in some cases, becoming the norm.
Supporting innovation and digital transformation all the way through to the back office is where we think massive benefits will be delivered in terms of reducing costs, streamlining the business, allowing established firms to compete with the new entrants that have little or no legacy.”
Available on the Cloud and pre-configured for IFRS 17, Legerity FastPost can help insurers accelerate their programs.
Contact Legerity today to discuss your program with our IFRS 17 experts.