Needless to say, the insurance industry is rather familiar with technological changes, however, there are many myths regarding modernization. These myths can be harmful and do not allow insurers to use new technologies to the extent possible. Here are the top ten myths of technology modernization in insurance and the truths behind them: Here are the top ten myths of technology modernization in insurance and the truths behind them:
Myth 1: Modernization Gives Rise to the Statement Modernization is Too Expensive
Reality: Technology modernization costs money, but in the long run the benefits that come from it out way the costs. The positive aspects of modern systems include cutting the operation costs, increasing the speed of the processes, boosting customer satisfaction, and, as a result, increasing their profit.
Myth 2: That’s Why GIS Are So Popular Though Their Legacy Systems Are Good Enough
Reality: Although the data in the legacy systems can still be processed, it has several disadvantages, mainly its inability to adapt or expand enough to meet contemporary commerce requirements. As new technologies become available upgrades can offer better integration, data analysis, and reliability to the systems.
Myth 3: Globalization and Technological evolution Interference with business processes
Reality: It is therefore clear that when this process is properly coordinated, it is possible to modernize the various processes in an organization without much interruption. More often than not, it is a planned procedure where the integration of new technology is done in stages to ensure the insurance firm continues to run during the transition.
Myth 4: Modernisation is, therefore, possible only when the insurers involved are large ones.
Reality: Converting your data surrounds to tape does not make you an IT powerhouse and technology modernization is not limited to the giant insurers only. Modern technologies also promise benefits to small and medium-sized insurers that are ready to adopt new technologies, as long as the costs are moderate as in the case of cloud-computing or SaaS solutions.
Myth 5: Modernisation is Not an On-Arrival Program
Reality: It can therefore be ascertained that the process of technology modernization is a continuous one. This exemplifies the fact that system evolution becomes inevitable over time and hence insurers have no other option than to improve and adapt the existing systems to meet changed customer demands.
Myth 6: Modernisation Only Relates To Its Systems
Reality: Modernization never occurred solely in the IT environment. It can include but is not limited to, adjustment of functional and technical practices, management methods, and a company’s approach towards customers. It means that only the convergence of all these variables can help to achieve successful modernization.
Myth 7: This paper aims to establish that cybersecurity risks rise with the pace of modernization.
Reality: Technologies in use today may have security features that could help with cybersecurity than those that have been outgrown. Thus, insurers can avoid potential risks or, at least, protect the information they process, following the industry’s standards.
Myth 8: Modernization removes the necessity of human workers for its converse is true, and the two practices are mutually exclusive.
Reality: Although automation and AI use are now widespread and can encompass numerous activities, there is still great importance for human employees for problem-solving, interaction with clients, and decision-making processes that require theoretical data. Technologization as a part of the modernization process enriches the human factor, ensuring more efficient results.
Myth 9: The key finding based on the survey highlights that: Customers prefer traditional methods.
Reality: Modern customers are eager to use technologies and search for the corresponding solutions. Making available today’s style of P2P platforms, thereby increasing the level of user satisfaction and brand loyalty. Due to these changing needs, there is a need for insurers to transform and respond to what the consumers are presenting them with.
Myth 10: To sum up, the process of modernization provides an opportunity for achieving immediate outcomes.
Reality: The dynamics of change that modernization brings may not yield positive results in the shortest time possible. This is why it is always important to allow for a period of time to enable the new technologies to be properly assimilated into organizations in order for their optimal benefits to be realized. This clearly shows that to achieve higher levels of success, patience and perseverance are some of the most essential qualities.
