Budget constraints and legacy systems are among the core barriers the majority of players in the insurance industry see as top hindrances to adopting automation, insurance software company RTD’s latest survey revealed.
According to the latest insight poll from RTD, about 63% of insurance leaders cited financial pressures as hindering them from adopting automation, as most businesses still find their way in the post-COVID-19 pandemic market.
Eighty (80) per cent of the respondents said budgetary limitations are the primary challenge, while 67% said they struggle with outdated tech infrastructure. Sixty (60) per cent said there is cultural resistance within their organisation, while 34% of the respondents said skill gaps remain an issue.
These latest figures, the company said, are higher than the previous results of a similar survey, where only 60% of the respondents cited budget issues, while 39% reported resistance to change.
“This upward trend reflects the mounting complexities within digital transformation, exacerbated by economic pressures and the need to upskill in the face of rapid technological advances,” RTD said.
Joe O’Connor, deputy chief executive at RDT, said that the latest poll shows the critical need for insurers to balance automation with budget and constraints of legacy infrastructure.
“It’s clear that an agile but carefully phased, strategic approach to automation will deliver sustainable value, rather than rushing into solutions that may create further challenges,” he said.
The results also reflect that the findings of an earlier report, showing that 85% of insurers expressed concern over rushed automation initiatives within the market.
In September, RDT released its Tech Poll survey, which noted that there is cautious optimism regarding the adoption of AI, with respondents saying there is potential for the technology to improve insurance processes and platforms.
That survey also revealed that 61% of firms are currently using generative AI, while 52% of insurance tech professionals are confident that the sector is implementing AI in ways that will benefit customers and brokers.
In his statement, O’Connor added that platforms that are designed to reduce implementation time and lower costs would help insurers in their goal to improve customer experience.
“RDT’s ACE architecture is specifically engineered to ease this transition by dramatically reducing implementation time and change costs, empowering insurers to focus on driving innovation and enhancing customer experience,” he said. “This approach is essential in a climate where insurers are under pressure to modernise while remaining cost-effective.”
