71% of decision-makers within the insurance industry have expressed their unhappiness with the significant effort required to initiate and digitally launch updated insurance programs.
The findings, which were published by insurance technology leader Sure in its 2024 State of Digital Insurance Report, shed light on the dissatisfaction among insurance decision-makers with legacy rate service organisations (RSOs), a fundamental component of the insurance ecosystem.
The research underscored that despite the widespread adoption of Rate Service Organisations (RSOs) and their services within the insurance sector, almost three-quarters of the respondents believe that traditional RSOs demand substantial effort to initiate, sustain, and digitally launch insurance programs.
The challenges posed by legacy RSOs extend beyond the level of effort required, encompassing high costs and limited flexibility. A staggering 75% of respondents report annual expenditures of at least $1m to execute insurance programs, with 31% allocating $10m or more.
Despite these considerable investments, only 12% of respondents express high satisfaction levels with legacy RSOs. Effort and flexibility emerge as the primary areas of dissatisfaction, despite being the top priorities for insurance professionals.
Wayne Slavin, co-founder and CEO of Sure, stated, “Having spent almost a decade partnering with global carriers and consumer brands to build and launch digital insurance programs, these results are not surprising. The plumbing and pricing of the insurance industry is a mess and a big part of it is the incumbent RSOs who haven’t kept pace with the transition to fully digital insurance.
“Carriers are spending up to $10m a year on their RSO’s services to build and maintain their insurance programs, and yet the data shows that the pain points are everywhere and satisfaction is shockingly low. One would assume that with so much investment of time, effort, and money, satisfaction would be guaranteed, but it’s not. The industry needs a new way forward to provide modern solutions for carriers and, ultimately, for consumers who are seeking insurance options.”
Copyright © 2024 InsurTech Analyst
