PriyaPatel
TLDR:
Key points:
- Rapid technological advancements are transforming the insurance industry
- Hyperexponential released a whitepaper on whether firms should build or partner for insurance pricing transformation
Revolutionising Insurance Pricing: To Build or Partner for Success
The landscape of the insurance industry is undergoing a profound transformation driven by rapid technological advancements. Hyperexponential, an InsurTech company, has released a new whitepaper focusing on helping US firms make strategic decisions about whether they should build or buy their framework for insurance pricing transformation.
Carriers are striving to remain competitive in this digital age, and pricing has emerged as a critical area for innovation. Research by McKinsey shows that pricing transformation can enhance combined ratios by up to 6 percentage points. A survey among Specialty and Commercial insurers in 2023 revealed that 83% of respondents acknowledged the need for enhancements in their rating and risk assessment technologies.
When it comes to pricing transformation, the journey is different for each carrier depending on factors like resources, regulatory environments, and strategic goals. Insurers must carefully evaluate whether to develop bespoke rating software in-house or partner with external vendors. The whitepaper provides a structured framework to help insurers make informed decisions aligned with their long-term business objectives.
Key Takeaways:
- Rapid technological advancements are driving transformation in the insurance industry
- Pricing stands out as a critical area for innovation
- Insurers must carefully evaluate whether to build their own solutions or collaborate with vendors
