The challenges property and casualty (P&C) insurance experts face continue to evolve and increase in complexity. The rapid digital acceleration continues to dominate customer expectations, driving the need to deliver a seamless experience for every interaction. Other competing concerns include improving efficiency and reducing risk. The following provides a detailed breakdown of the most influential trends reported by P&C insurance executives.

  1. A meteoric rise in IT modernization. Insurance companies are breaking free from the shackles of legacy systems and outmoded technology. Nearly 60% have upgraded more than 20% of their applications, and about three-fourths intend to within the next two years.
  2. Ongoing IT recruitment challenges. Hiring top IT talent continues to be a struggle for 82% of insurance executives, which hinders their tech advancement goals. However, the difficulty of finding highly qualified candidates is abating slowly, as this number is down 6% from last year.
  3. Prioritizing AI and machine learning. Rapidly advancing technology continues to dominate 2023 trends. In addition to modernizing IT infrastructure and applications and hiring skilled IT employees, insurance providers are also planning to harness the power of AI and machine learning to drive massive innovation.
  4. Taking up the fight against climate change. Natural disasters are occurring more frequently, increasingly lethal, and ballooning in cost. The U.S. experienced an average of $20 billion disasters in the last three years. It’s a staggering amount compared to the $12.8 billion average per year in the 2010s and the $6.7 billion average in the 2000s. Insurance companies often bear the burden of those expenses, and many are seeking forward-thinking solutions to get ahead of weather-related losses rather than reacting to them.

These trends directly influence insurance carriers’ abilities to achieve their goals. Insurers must align their business models and practices with IT and technology priorities. Addressing legacy systems and claims pain points is also critical for customer satisfaction. Additionally, leveraging AI and machine learning capabilities can enhance and expedite these goals while also attracting top IT talent. Contact Windermere Insurance Group to learn more about the latest trends influencing P&C insurance.