Novidea Predicts 2022 Key Trends Driving Digital Transformation in the Insurance Market
Novidea Predicts 2022 Key Trends Driving Digital Transformation in the Insurance Market
Key trends that will drive digital transformation in the insurance market in 2022 include, trackable hybrid working, increased customer demand for digital services and more M&A activity.

Novidea, the leading provider of the built-on-the-cloud, data-driven platform that enables brokers, agents, and MGAs to drive operational efficiencies and growth across the entire distribution lifecycle, highlights the key trends that will drive digital transformation in 2022. 

Hybrid working. According to Accenture’s Future of Work Study 2021, 83% of global workers surveyed said they prefer a hybrid model where they can work remotely at least 25% of the time. The survey also shows that 63% of high-revenue growth companies have enabled hybrid models where their workforce can work from anywhere.  

The experience of repeated lockdowns since 2020 has proved the effectiveness of remote working, however, some firms remain concerned that home working momentum will be maintained, and are looking for SLA tracking and performance analytics to ensure optimum results from their staff. At the same time, forward-thinking firms are looking to embed ‘broking on the move’, where staff can work, including e-trading, from anywhere, by accessing the data they need from any location 24/7.

Increased customer demand for digital services. The last couple of years have accelerated customer expectations for seamless and personalised digital interactions across digital and mobile channels, with 82% of customers now expecting multi-channel interactions with insurance providers as standard. This has led to the development of self-service digital portals through which customers can manage their account, buy products and handle claims, a trend that is only likely to intensify in 2022. 

Increasing M&As. As a result of increasing competitive pressures, mergers and acquisitions among insurance agents and brokers have hit record highs. Agency M&A deals in the US surged by 20% year-on-year in 2020 and hit the highest levels on record in H1 2021, led by private-equity backed buyers. This trend shows no sign of abating, and with competitive pressures as high as ever, the US, UK and Global markets are likely to see even higher levels of M&A throughout 2022. 

“With these trends driving further digitalisation of the insurance market, we are seeing an increasing move away from legacy systems and towards cloud-based insurance platforms,” said Roi Agababa, CEO of Novidea. “Cloud-based platforms allow secure 24/7 access to data from any location to facilitate broking on the move. They are also essential for powering the kind of self-service platforms that brokers, agents, and MGAs increasingly seek to develop. At the same time, full end-to-end cloud-based platforms help to fuel successful mergers and acquisitions, making it simpler to integrate disparate businesses, provide reporting and transparency and reach a positive ROI much faster.”

These trends are leading to a huge increase in global demand for Novidea’s cloud-based, scalable insurance platform, with its advanced analytic capabilities and actionable information that translates into real-time business insights, with over 100 customers in more than 20 countries, worldwide. 

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