28 Finance Monthly. Bank i ng & F i nanc i a l Se r v i ce s For businesses to set effective plans and goals, they must have a full understanding of their operating environment, trends and challenges. Of course, while the pandemic has been the obvious major source of disruption to the insurance industry, firms need to reflect more widely on how conditions have impacted their operations. In particular, the pandemic accelerated digital transformation across the world. For the insurance industry, the role of technology across all aspects of the business is essential, especially as more people take up flexible working or decide to work remotely for the foreseeable future. These new developments are forcing business leaders to re-evaluate how their business operations and user experience fit with what customers expect in a technologically advanced world. Here are some of the insurance priorities to consider and even respond to this year. Cloud will become essential Today, more leaders in the insurance sector now understand the value of cloud computing. In fact, estimates predict that the cloud computing market size will reach $1.2 trillion by 2028. Keeping up means the industry will begin to take a cloud-native approach, like many other industries that are already using the technology as part of their business infrastructure and operations. This will come as no surprise to anyone as most of today’s software solutions are cloudnative. Whether it’s to access the plethora of third-party solutions available, improve efficiencies or increase cost savings, this trend will continue to gain momentum. As such, we’ll continue to see insurance companies look for solutions that help themaccelerate their cloud migration efforts. InsurTech solutions will lead the way Just as the banking industry was revolutionised by FinTechs, the insurance industry is joining the digital revolution. InsurTech, this year, will be key to modernising technology stacks to get the most value from IoT, data and cloud, meaning InsurTech will become the norm. Yet this means SaaS-based solutions built on APIs will need to be put in place to deliver personalisation on a much greater scale. Due to the level of competition in the market, the modernisation of the insurance industry will continue to grow at a fast pace. The sector’s maturity will depend on the richness of solutions InsurTech makes possible. With the most modern, effective systems, this growth will enable businesses to provide convenient and direct value propositions to both customers and clients. A wider ecosystem will be API driven More and more new platforms are being built daily and we’re already seeing the development of microinsurance products that can be plugged into different marketplaces. As a result, this drives product simplicity, as well as ensures focused customer engagement and services. The acceleration of this trend will continue in 2022 and the insurance sector will take a larger role in this wider technology ecosystem. Next, the focus for business leaders will be to gain value from the technology, which will require better use of APIs and the development of partnerships with 1 2 3 “Estimates predict that the cloud computing market size will reach $1.2 trillion by 2028.”
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