Australian insurers need to innovate to survive, says TAS

In its insurance industry report Innovate, or be left behind insurers have several key improvements to make to keep up with the competition from insurtech and the threats from digital disruption.

The report, which is based on interviews with senior executives at Australian insurance firms, suggests insurers should stop relying on legacy systems, invest in technology and prioritise customer-led innovation - such as multi-product discounts. 27% of executives said that adapting to disruption is a key challenge while the same number said maintaining margins is.

Shane Baker, CEO of TAS, commented: “Given that a customer focus has not been a strength of insurers to date, they are now challenged to keep up with disruptors by becoming customer-led and adaptable with their offerings. Legacy systems and regulatory overhaul overhead remain barriers to achieving this. However, with more and more customer-led processes, the industry outlook is promising.”

Insurance giant IAG has recently set-up insurtech hubs in both Singapore and Sydney called Firemark Labs.

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