Top trends and priorities focus on managing costs and improving digital service quality for clients
We met with 89 property and casualty insurance executives to understand their top trends priorities and how they plan to navigate these uncertain times. These executives cited managing costs to improve combined operating ratio as their most impactful industry trend, and improving service quality and productivity as their top business priority. In terms of macro trends, digital acceleration is impacting expectations for the customer journey. Discover executives’ top trends, priorities and more.
IT modernization to rise:
57% have modernized >20% of applications; 73% plan to in 2 years.
IT hiring challenges ease, but continue:
82% cite difficulty in hiring IT talent, down from 88% last year.
AI tops innovation plans:
AI / machine learning is #1 innovation area in 3 years; legacy technology is #2.
Climate action rises in impact:
44% cite high impacts of the fight against climate change, up 10pp vs 2022.
Extended digital strategies needed:
97% have digital strategies in place, but only 35% include ecosystems.
This year, 97% of P&C executives say their organization has an enterprise-wide digital strategy in place, of which 35% extend that strategy to ecosystem partners. At the same time, 39% are producing expected results from their strategies, above the all-industries average (30%). When comparing insights from the 39% producing results (digital leaders) to those building or launching digital strategies (digital aspirants), common attributes emerge.
For digital leaders in P&C Insurance, alignment is key for agility, but legacy systems have significant impact.
Cite high impact of digitization on business
models
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Digital leaders 94% |
Digital aspirants 73% |
Closely align business and IT operations to support
strategy
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Digital leaders 69% |
Digital aspirants 31% |
Closely integrate business and IT operations to execute strategy
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Digital leaders 63% |
Digital aspirants 31% |
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1
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Align business and IT priorities |
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2
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Address legacy policy and claims systems |
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3
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Responsibly leverage AI |
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4
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Streamline compliance, regulation and ESG reporting |
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5
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Leverage partner models as strategic enablers |
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At CGI, we help insurers deliver a seamless customer experience through core platform modernization and digital transformation. |