Property & Casualty (P&C) Insurance BPO Annual Report 2019: Combating New-age Risks – How Digital Helps
Property and Casualty (P&C) insurers have been witnessing massive disruptions in their business ecosystem from customers demanding Amazon-like experience, to climate change causing widespread and difficult to predict catastrophes. While the effects of these disruptions on P&C insurers’ market success and operational relevance have caught industry attention, their unavoidable impact on P&C insurers’ ability to effectively assess and manage risks remains under shadow.
The criticality and complexity of risk management is implicit in the insurance business model. Thus, when risk functions do not digitally evolve in line with the outside market and inside functions, it could create stagnancy to the returns achievable with all the other digital investments. Risk units continue to be burdened with excessive administrative workload, and their ability to provide strategic support to the business remains suppressed. This, coupled with new-age risks being simultaneously created such as cyber risks, calls for immediate action on digitalization of risk management.
Given that insurers face multiple internal challenges such as budgetary constraints and shortage of requisite talent, there are opportunities for strategically engaging with third-party service providers that have knowledge of insurers’ risk workflows and requisite digital capabilities.
Content
This report focuses on the necessity of digitalization of risk management operations in the P&C insurance industry. The content of the report includes:
- Establishing the criticality and complexity of new-age risk management
- Leveraging digital technologies for evolving risk management in line with current market dynamics
- Partnering with third-party service providers in order to address internal impediments to digitalization initiatives