Posted on 20 August 2024 by
The RDT industry survey reveals that a lack of automation and digital readiness is significantly affecting sector growth.
Read the full summary below.
20 August 2024
[3 MIN READ]
Part 2: RDT’s claims tech trends series
In today’s digital age, leveraging flexible and agile technology is essential for insurers to deliver better products and services. The potential benefits of adopting such technologies are significant—improving claims efficiency, simplifying customer journeys, and offering more relevant products with accurate pricing.
Industry report results
Insurers take strides into digital transformation
While insurers are embracing digital transformation, it’s clear that progress has its challenges. Updating legacy systems has proven to be labour-intensive and costly. Additionally, the rapid evolution toward digital-first, real-time products has become increasingly difficult due to economic pressures. It’s not enough to adopt digital tools; insurers need to embed them deeply into their operations.
Progress amid challenges
Despite these hurdles, insurers are making significant strides toward digitalisation:
- 54% are prioritising the implementation of low-code interfaces to automate customer journeys.
- 19% are focusing on replacing legacy systems entirely.
- 36% reported an increase in technology investment over the past year.
However, the pace of transformation remains a challenge. The survey highlights a major gap in digital readiness, with 31% of tech professionals rating the industry’s digital adoption as poor or very poor. Only 3% of respondents believe the sector’s digital transformation is excellent.
Joe O’Connor, Deputy CEO, RDT 
Joe O’Connor, Deputy CEO at RDT, commented:
“We’re encouraged by the shift from project-based transformations to continuous updates using low-code interfaces. Insurers are adopting new methodologies to build a culture of innovation. However, the focus should be on leveraging automation and data to create real customer value, rather than just focusing on technology.”
What’s next?
As digital transformation continues to evolve, it’s essential for insurers to stay customer-focused while embracing new tools. The right questions must be asked to ensure value for both the insurer and the policyholder. Automation and data-driven strategies are key to achieving this.
Stay tuned for our next insights on digital transformation in insurance!
Other articles to read
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Insurers advocate for greater transparency in claims
Dive deeper into the key findings of our survey and how automation can reshape the future of claims processing. -
Advantages of automation in claims
RDT’s CEO, Mark Bates, and Insurance Times’ Yiannis Kotoulas discuss the evolving claims landscape. -
Automating motor claims: a path to efficiency
Discover how RDT is reducing operational costs in claims by automating total loss from end to end.
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