Insurers face three key challenges

Security threats

Insurers must manage security risk and comply with changing regulations.

Personalized services

Insurers are expected to deliver personalized services for niche products to customer segments.

New competitors

The internet has reduced barriers to entry in the industry, increasing competitive pressure.

How these challenges impact insurers

Security threats

Insurers are challenged to protect confidential data, sensitive information and critical systems from internal and external security threats. 

  • The number of data breaches is increasing, as are threats from sophisticated cyber criminals.
  • Error-prone, manual processes increase the risk of fines and penalties.
  • Industry regulations are constantly changing, requiring costly and time-intensive compliance.

$3.62 million

The Ponemon Institute reports that the average cost of a data breach was $3.62 million per event in 2017.

Read the Ponemon paper >

 

Personalized services

Highly personalized experiences can deliver customer insight, engagement – and business growth for insurers.

  • Customers expect personalized services – across all channels, and available at all times. 
  • Ubiquitous data sources drive demand for usage-based coverage models. 
  • Quality interactions can build trust. 

47%

Of insurance customers surveyed, nearly half expect personalized and tailored services.

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New competitors

Insurers are pressed to succeed in this competitive market through innovation. 

  • Marketplace disruption as well as new ecosystems and operating models are driving opportunities and competitive threats. 
  • Modernization can increase flexibility in core systems, helping you create new digital initiatives faster.
  • Macroeconomic issues and cost pressures loom due to stagnant premium growth and return-on-equity ratios. 

46%

Nearly half of insurance executives report increasing competition from new and unexpected sources.

Read the paper > 

Your IT platform can be the solution

The right infrastructure can simplify compliance, provide the world’s best security, lower costs and meet rising demands for innovation.

See how IBM Z can help you solve the three key challenges for insurers

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