As technology functions in the insurance space become the norm, companies will need to allocate more financial resources to adapt to competition. Up until recently, ops and technology have not been associated with one another.
The relationship between these are changing as time goes on because of the evolution of insurtech. Large firms expect tech innovation to drive profitability and to improve CX. Incumbents are using tech to serve their customers and predict new value propositions to offer them. The insurtech evolution will fundamentally change the way insurance providers operate, automate their processes and will eliminate a lot of administrative manual work.
Tech will ultimately control insurance operations going forward. P&C, life and auto insurance propositions are allocating resources to their technology capabilities. Technology will eventually take over traditional operations. As an example, from 2010 to 2018, the average ops cost of IT increased nearly 5% in insurance as a whole.