Global outlook positive for insurance in 2023, say execs

By Onome Amuge

Michele Trogni, chairman/CEO, Zinnia

In 2022, the insurance industry was struck by a myriad of challenges which ranged from inflationary pressures and slow economic growth to rising claims and premiums, according to industry executives in the sector.

Despite being presented with much of the same, or similar challenges of the previous year, industry executives have expressed hope that 2023 may be a year in which their organisations continue to build on the progress they have already made, noting that the insurance industry is ready to yield its ‘new-found resilience’ to take the year in its stride.

Michele Trogni, chairman and chief executive officer of Zinnia, a life and annuity InsurTech company based in Kansas, United States, said the insurance industry is at a pivotal point where it can play a significant role in the financial wellbeing of individuals and families in tough circumstances.

Trogni, however, admitted that much of the industry is still built on complex and costly, inefficient systems. She therefore advised insurance companies to double down on technological infrastructure, such as a system of record, to eliminate the fragmentation that policyholders experience rather than veering away from investing in digitisation due to inflationary pressures.

According to her, the insurance industry is in the midst of a digital transformation shift making the adoption of these technologies even more important to integrate products, enhance customer experience and improve distribution models.

Eileen Potter, vice president, insurance marketing at Smart Communications, said 2023 is likely to be a year that will see a continuation of trends and strategies from 2022.

According to Potter, the insurance industry seems to have settled into a more normal ‘though changed’ rhythm with respect to operations. She also projected that a major trend that is expected to progress into the year, is an increased collaboration between InsurTechs, insurers, brokers and insureds.

“Those insurers who have made definitive decisions about a remote or hybrid workforce, cloud deployment, and a digital communications strategy are likely better positioned for success moving into the new year,” she added.

On the flipside, Potter said the uncertain global economy, the continuing hard market, and increased competition from new entrants in the industry will challenge organisations in 2023.

She emphasised that insurers need to focus on ensuring that the investments they make, whether in technology, product development, or new communication channels are going to deliver the value they expect. The only way they can do, she added, is to be very deliberate about defining the expected value of any project before it begins.

“The pace of change will only continue to increase, and insurers must remain agile in order to successfully compete, both today and in the future. But ultimately, the resilience shown by the industry during the pandemic has evolved into a positive force to drive continuous innovation in 2023,” Potter said.