BusinessWhere is the insurance industry heading? Five Developments in...

Where is the insurance industry heading? Five Developments in 2023


- Advertisment -sslate

The insurance industry is undergoing significant transformation. The competitive pressure and increasing market and customer demands in the industry, as well as new players and business models threatening the established core business, are driving consistent innovation. However, modernising and digitalising remain the top challenges for insurance companies. With all this in mind, which new trends and developments will shape the insurance landscape in 2023? Drawing on over three decades of experience, long-established insurance software solutions provider, Fadata, has identified five developments or trends in particular:

1. Modernising the IT landscape

The modernisation of legacy systems is one of the central tasks of many insurers. Mainframe systems are very stable and secure, but they do not offer flexibility. They also hinder the rapid fulfilment of new business requirements. Only a modernised system promises long-term security. Modernisation often focuses on technical issues, but procedural realignment is just as important: rigid and manual processes are replaced by flexible and automated processes. This also requires a departure from proven ways of working and thereby a change of mindset. If there is no shift in mindset, there is a risk that an insurer will only make partial use of the opportunities offered by a modernised environment.

2. Using the cloud

Cloud platforms are widely becoming a standard. Not least for the insurance industry but for most current modernisation initiatives, many of which adopt the public cloud. A cloud infrastructure with a containerised insurance platform and cloud-native development environment offers numerous advantages, such as agility, flexibility, performance, cost efficiency, and above all, scalability. After all, the business of insurance companies develops dynamically with regular peak loads. An example of this are the cut-off dates on which insurance policies, such as car insurance, can be cancelled or newly concluded. Here, especially, the cloud offers the necessary demand-oriented scalability.

3. Focusing on the customer experience

Customer loyalty is declining in almost all industries, including the insurance industry. Measures must be taken to strengthen customer satisfaction as well as customer loyalty, which is why customers are dictating the current evolution of the insurance industry. In the digital age, consumers expect a digital offer from their insurance company, for example, a customer-oriented online access with a highly individualised user interface.

Legacy processes no longer meet the expectations of today’s customers, so insurers will need to increasingly utilise digital channels for different tasks, from sales to processing claims.

A big focus of 2023 will be the development of a fully automated or data-driven program that accelerates the underwriting approval process. Insurance customer satisfaction only really becomes relevant via the claims process, so to encourage ongoing loyalty it is paramount that customers have a rewarding, seamless claim handling experience.

4. Using digital ecosystems

The importance of digital ecosystems is increasing across the board, and insurers are set to benefit. Ecosystems provide insurers the opportunity to link their own insurance offers with the products, services and benefits of other service providers – including third-party providers or insurtechs, for example.

With the cloud as a basis, with which insurers can flexibly access data together with partners via open interfaces, service extensions can be implemented relatively easily and quickly. In the area of motor vehicle insurance, for example, cooperation with repair shops, towing services, or rental car companies is conceivable.

5. Embedded insurance offers

With an estimated 3 trillion-dollar market potential , hardly any insurance company can ignore the trend topic of embedded insurance. Customers at large are becoming accustomed to packaged deals, which are convenient, easy and quick, and are therefore the main driving force for the establishment of embedded insurance offers. Alongside other new approaches to customer engagement, embedded insurance will help redefine insurance and the role it plays in people’s lives.

Of course, a prerequisite for the establishment of such embedded insurance models on the part of the insurer is a modernised system landscape with digital process chains.

Sam Knott

Sam Knott, UK Sales Director, Fadata comments:

“Throughout 2023, innovation and experimentation will manifest around customer experiences in order to catch up with the precedents set by consumer finance organisations.

Throughout 2023, I expect to see a shift from technology promises and innovations to implementations and delivery.

Through the utilisation of cloud platforms and digital ecosystems, insurers will enable their price points to move away from a customer cost to a true value proposition, putting a blend of product relevance and customer focus at the centre of their ideologies.

Insurers that implement core technology, position themselves at the forefront of the market, giving them the ability to enter new markets and products at a rate of scalability that their competitors will struggle to keep up with.

Across the next 5 years this will increase and open new revenue streams, ultimately leading to improved profitability.”

Fadata is a leading provider of software solutions for insurance companies globally. We are on a mission to empower the insurance industry to drive customer engagement, innovation and business value. Together with our customers we are on a journey to build the future of insurance and impact millions of people’s lives every day. Fadata has clients in over 30 countries across the globe. Headquartered in Munich, with international offices in more than 5 European cities, Fadata is backed by Private Equity Riverside and Lowell Minnick.

Sunshine Slate
Sunshine Slate
Sunshine Slate is your news, entertainment, music fashion website. We provide you with the latest breaking news and videos straight from the United States of America.


Please enter your comment!
Please enter your name here

Latest news

The 2023 Startup Index: New Study reveals the 10 Best Countries for Launching a New Business

Business Name Generator has analyzed 50 countries to reveal the best places to launch a startup,

Things You Should Know About the Evaporative Cooling Solution Offered

The bonaire evaporative cooling services can reduce the money you spend on your power bill. Know About the Evaporative Cooling Solution.

Top 4 AC Features you Need in 2023

In this article, we'll explore the top 4 AC features you need in 2023, with a particular focus on Hitachi Cooling & Heating

From Raw Material to Masterpiece: The Process of Steel Fabrication

Steel fabrication is the process of turning raw steel into finished goods. Globally, the steel fabrication business is important to many nations' economies.
- Advertisement -

Not just aNYplace: SS23 Campaign at

This spring, GANT invited a cast of creatives to show how their unique style channels the chaos and coolness of New York City.

Black, Male, Blood type A: New review identifies risk factors for Pancreatic Cancer

Smoking, gender, ethnicity, and even gum disease and blood type can be risk factors of pancreatic cancer, reveals new insights
- Advertisement - Motel 6

Must read

8 Reasons to Use Bidet Converter Kit

Overall, bidet converter kits offer a range of benefits for personal hygiene, environmental sustainability, and overall health and well-being. If you're considering making the switch from traditional toilet paper, a bidet converter kit may be a great option to explore.

5 Best Hair Treatment Salon in Dubai You Feel Excited to Visit

They get to explore new places while looking their stunning best. If you are a foreigner looking to visit Dubai or are a local who wants top-quality hair treatment, then keep reading. Why? Well, we are going to list the best hair treatment salons in Dubai.
- Advertisement -
- Advertisement -sslate

You might also likeRELATED
Recommended to you