The next era of commercial insurance: Faster, smarter, and embedded

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  Evolving risk and market pressures

  • Pandemic aftereffects, supply chain disruptions, climate change, and cyber threats are reshaping risk management.
  • Insurers must shift from reactive coverage to proactive, data-driven solutions to meet changing client needs.
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  Crisis of confidence in innovation

  • Only 21% of 350 surveyed carriers are confident in their product innovation efforts.
  • Nearly 50% express uncertainty about their ability to drive meaningful impact, highlighting widespread hesitancy.
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  Data integration and agility gaps

  • While 87% believe real-time, data-driven underwriting will replace traditional models within five years, fewer than one-third are ready to integrate real-time data.
  • Large carriers show 72% readiness compared to 25% among smaller firms, underscoring significant disparities.
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  Legacy constraints and inflexible products

  • 45% of carriers rely on standardized products; 86% admit to failing to deliver flexible, modular offerings.
  • 83% of executives cite legacy systems as the primary barrier to innovation, with key products remaining unchanged for more than 15 years.
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  Transformation through agility

  • Product launch cycles are projected to shrink from an average of 15.5 months to 9.5 months in the next two years.
  • Modular, cloud-based architectures, process redesigns, and cross-functional teams are essential to accelerating innovation and reducing time-to-market.
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  Digital distribution and ecosystem integration

  • 89% of respondents see digital channels as significant growth drivers as insurers shift toward embedded insurance and integrated risk protection.
  • Strategic partnerships are key to creating seamless, customer-centric ecosystems.
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  Pioneers vs. Traditionalists

  • Pioneers invest heavily in flexible, cloud-based platforms (66%), strategic tech partnerships (63%), and data-driven underwriting (61%).
  • They launch new products in an average of 6.8 months—compared to nearly two years for Traditionalists—and continuously update their offerings (84% vs. 20%).
  • Pioneers are significantly more engaged in third-party collaborations (82% vs. 52%) and are more ready for real-time data integration (79%).
  • They actively restructure their organizations and allocate more than 20% of their budgets to emerging technologies, enabling disruptive, high-premium innovations.
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  The road ahead

  • Insurers must transition from legacy-bound, reactive models to agile, data-driven, and ecosystem-integrated risk management.
  • Immediate, decisive action is required to capitalize on market opportunities and avoid being left behind by more adaptive, tech-driven competitors.

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