ACORD, the standards-setting body for the global insurance industry, has released its 2022 Insurance Digital Maturity Study of the world’s 200 largest insurance carriers.
This year the Maturity Study has expanded to include mutuals — an important component in the insurance industry.
It reveals that, among the 200 largest worldwide insurers, fewer than 25% have truly digitised the value chain, while more than 10% are not appreciably leveraging digital technologies within their current business processes.
More than half of the insurers in the study are still exploring how digitisation can be applied against their business model.
The study assessed each company’s digital maturity relative to its peers; compared the extent of digital capabilities with the level of value creation; and identified the issues, implications, and execution imperatives around successful digitisation.
Bill Pieroni, President & CEO of ACORD, said: “The global pandemic amplified existing market forces, accelerating transformation that was already underway at forward-thinking organisations.”
“The industry saw changes in ten months that may have otherwise taken ten years. The gap between those who have been prioritizing digitisation, and those who have systematically underinvested, is now impossible to ignore.”
The study found that companies that embrace digitisation significantly outperformed others in the industry, driving improved value creation.
The findings include an “unambiguous correlation between digital maturity and increased financial performance”, ACORD says.