Industry predictions for 2023

2022 in the rearview

As we wind down for the year, it should come as no secret that 2022 shaped up to be a time of record transformation and technology adoption across the insurance sector. Heading into 2023, industry leaders face new challenges that include rising costs, an uncertain economic outlook and ever-increasing pressure to improve customer satisfaction.

And it’s been a big year at Tractable too, with our expansion into the property space, exploration of and success executing new use cases for our AI and an intense focus on advancing our product offerings for some of the world’s largest P&C insurers around the globe. 

So with 2022 in the rearview mirror, where are industry leaders turning their attention as we head into the New Year? In this episode of Inside AI, we’ll deep-dive into the need-to-know trends for insurance leaders, with insights from Jimmy Spears, head of automotive at Tractable, Michael Anderson, global lead for ecosystem solutions at Guidewire and Tony Triola, head of ecosystem partnerships at Verisk:

1. Tightened industry focus on automation and adoption of AI tools

Straight-through-processing (STP) is the name of the game and if you aren’t working towards claims automation yet, you’re behind the ball. With STP bringing streamlined processes, improved accuracy and reduced costs throughout the claims cycle, it’s no surprise that the biggest carriers are investing in AI and automation. Moving into next year, we’ll see even more accessibility to and widespread adoption of these tools as leading P&C carriers look to stay competitive. Michael says it best: “Automation has been a key driver for operational strategies for the last few years, but to achieve automation at-scale has been challenging for many insurers. I think in 2023, the right technology will be in place to execute on automation.”

2. Evolved ecosystems that encourage industry-wide advancement 

The insurance industry-at-large is quickly moving towards an open ecosystem approach that enables all players across the claims cycle to access data and drive technological advancement. Traditionally, tech adoption for insurers has been slow and costly, with a mindset that favors total ownership over the most advanced technologies. But today, with so many integration tools and platforms available, the industry is realizing the true value of cross-sector collaboration. As Tony puts it, “Different companies are good at different parts of the claims process, and we need to realize that we have more to gain together as an ecosystem, than we have competing against each other for ownership of these technologies.”

3. Prioritization of anti-fraud measures as organizations rely more heavily on automated processes

Finally, as more insurance leaders adopt AI and have access to automation tools, fraud prevention will be more important than ever. With the advancement of technology comes more opportunity for claims fraudsters, so AI-powered fraud detection tools will become more sophisticated to ensure systems adapt accordingly and catch any bad players. 

Don’t miss this episode of Inside AI as our industry leaders explore these key trends to drive transformation and acceleration in 2023. To learn more about any of the topics explored on today’s podcast, reach out to us at information@tractable.ai and read more about our podcast below.