Digital Transformation in Commercial Lines: A Frenzy of New Activity is Underway

June 03 2022 | Deb Smallwood

Since 2020, there have been endless discussions around COVID-19’s impact on customers’ needs and how the insurance industry adapted swiftly to unprecedented times. Although the pandemic helped accelerate innovation in some areas of the business, many commercial lines insurers also came to realize how unprepared they were for the digital demands resulting from the global crisis. In fact, a recent SMA survey found that fewer insurers consider themselves to be in transformation mode today compared to the pre-pandemic era. So, it is no surprise that in 2022, many senior executives across commercial lines see how imperative it is to transform and innovate, and a sense of urgency is driving a frenzy of new activity.

digital trans article2SMA’s newly released research report, “Digital Transformation in Commercial Lines: Project Priorities for 2022 and Beyond,” identifies specific project plans for insurers in small commercial lines and mid/large commercial lines this year. Across all lines in the commercial market, insurers are focusing on operational transformation and the technologies needed to enhance data and analytics capabilities in different business areas. There is also more significant activity in initiatives to improve digital interactions with agents and policyholders. However, unique project priorities emerge when looking separately at insurers in small commercial versus mid/large commercial lines. 

Within small commercial, SMA’s research finds that insurers in this market are further along in their digital transformation journeys than their peers in mid/large commercial lines. Specifically, small commercial insurers are increasing their investments in straight-through processing (STP). For insurers serving the mid/large commercial segment, modernizing core systems and eliminating manual processes are their top two project areas in 2022. Advancements in these areas will be essential for insurers handling complex and specialized risks that involve vast amounts of forms, documents, and data.

Insurers’ plans in 2022 will only continue in the years to come, and it will become ever-more critical in a competitive industry environment. Upgrading digital capabilities to serve agents, policyholders, employees, members, and shareholders will be hallmark traits of future market leaders engaged in their digital transformation journeys today.

For more information on the digital transformation journeys of commercial lines insurers, read SMA's recently published research report, “Digital Transformation in Commercial Lines: Project Priorities for 2022 and Beyond.”

Carriers and MGAs, SMA wants to hear your perspective on the current state of P&C distribution. Our new survey assesses the opportunities, challenges, and strategies of today’s carriers and MGAs. Respondents who complete the survey will be invited to a webinar discussing the study's results and be entered into a drawing to win an gift card. 

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To learn more, please contact:
Deb Smallwood
Senior Partner
ReSource Pro