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The technology pivot Insurance businesses must make

Jon Davies
16-Aug-2022 14:09:21

A recent study from Forester and MYOB revealed the significant impacts of outdated business software on mid-market businesses and the technology pivot they can't afford to miss.

In the report, it was noted that unified, cloud-based business management systems are vital to a mid-market organization's ability to thrive and succeed and listed four challenges facing these businesses:

1. THE STATUS QUO

According to the MYOB report, businesses that are hesitant to take advantage of modern digital technology platforms not only halt their growth but also waste resources and incur unnecessary costs - on average, 28% extra in operational costs each year. For example, the report showed that in an organization with 100 employees, 12.5 hours of wasted time per employee occurred each week. This equates to roughly AUD $2 million per year in extra costs.

"12.5 hours of wasted time per employee occurred each week"

2. GROWTH

Over 94% recognized that the challenges encountered with their current business software harmed growth. Mid-market businesses that continue to rely on desktop platforms or piecemeal integrations for their core systems are missing out on significant growth opportunities. Fully unified cloud platforms help these businesses simplify processes, connect data, reduce manual tasks, and unlock growth.

3. COMPETITION

In a prior report from Forrester, in May 2019 ("Beyond Agility – Adaptive Enterprises Hold the Winning Hand,") the analysts found these types of firms were growing over 3x faster than competitors. However, they also found that over 50% of current business solutions are still hosted on-premises with either siloed or make-shift integrations across different solutions.

4. SMART CHANGE

More than a third of decision-makers in this survey reported that leadership does not fully understand the impact business and people platforms have on broader business goals. For business leaders to seize the benefits of a unified business administration management platform, decision-makers need to make a robust economic case for technology or digital transformation pivots. A business case highlighting the cost of inaction and how a centralized platform will unlock productivity, efficiency, and revenue benefits is critical.

At InsuredHQ, we have seen this impact within the Insurance industry. Companies that aren't seizing the benefits of modern digital business management systems are struggling.

Mid-market insurers and MGAs across Australia and New Zealand must make significant technology and automation improvements to successfully take on the challenges of a post-COVID-19/work-from-anywhere business world and an ever-increasing expectation from customers of a customer-centric experience.

The core systems of a business must be upgraded first to leverage and navigate future challenges, unlock productivity, and stay ahead of the competition.

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