Two-thirds of life insurance executives worldwide say technology, such as artificial intelligence, automation and customer-service tools, will have the greatest impact on their company in the next five years, according to a recent study by LIMRA and Boston Consulting Group (BCG).
Customer demands and expectations are being set by technology companies like Apple and Google. Life insurers recognize the need to leverage technology to innovate their business processes to better engage today’s consumers, create greater efficiencies and position them for the future.
The study finds 4 in 10 executives believe artificial intelligence (AI) and automation will be the technologies most crucial to their company’s success. Prior LIMRA research finds today’s insurers are most commonly using AI for intelligent underwriting and to enhance customer service through chatbots. Executives believe deploying automation technology will lower operational costs and improve efficiencies, which would allow greater investment in growth opportunities.
Rounding out the top five external factors that were high on executives’ minds were changes in customer behavior (54%), regulation (45%), economic conditions (40%), and increased competition (37%).
The study, conducted by LIMRA and Boston Consulting Group (BCG), surveyed more than 500 C-suite life insurance executives, nearly one-fifth of them CEOs or presidents, across 62 countries to identify their greatest challenges and the biggest external forces affecting their business and their priorities for the future.
To learn more about how these forces are impacting life insurance companies in the U.S. and across the world, please watch the latest episode of LIMRA Unplugged. In it Alison Salka, senior vice president and head of LIMRA Research, and Tim Calvert, managing director and partner and global leader of BCG’s Life Insurance practice, discuss the findings of the study and what it will take for insurers to succeed in today’s marketplace.