Leaders dissatisfied with efforts to get updated insurance programs launched digitally: Sure

Sure revealed that 71% of insurance industry decision-makers are dissatisfied with the level of effort to get updated insurance programs off the ground and launched digitally, despite the widespread use of legacy rate service organisations (RSOs) and their services.

The 2024 State of Digital Insurance Report surveyed hundreds of insurance industry decision-makers to dive deeper into the current state of the digital insurance landscape.

With a high percentage of dissatisfaction, experts noted, these shortcomings hurt consumers with limited options and coverage that’s not keeping pace with the market.

Sure also highlighted that the current options for launching insurance programs are time-intensive, massively complex and highly expensive.

The report revealed that 75% of respondents noted that their companies spend at least $1 million annually to execute these programs — and 31% report spending $10 million or more.

Despite all of this investment of financial resources and effort, only 12% of respondents are very satisfied with legacy RSOs; and when asked what they are least satisfied with, respondents cited effort (46%) and flexibility (31%) despite both also being their top two priorities.

Wayne Slavin, co-founder and CEO of Sure, said: “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.”

He continued: “Carriers are spending up to $10 million 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.”

As the embedded insurance market is expected to exceed $70 billion by 2030, this new research reveals Sure’s new survey underscores the difficulties that organisations face as they develop new insurance programs in a market that has long been dominated by a handful of incumbent RSOs.

As one respondent said, “We have not yet identified an RSO that provides the cost, value, and flexibility we are seeking.”

“To truly reach customers with insurance products in their moment of need through digital experiences, a new solution must be enabled with a technology platform, manage necessary integrations out of the box, and prioritise seamless digital customer experiences. Sure’s State of Digital Insurance Report demonstrates that the current solutions simply cannot deliver on those basic needs,” Sure stated.

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