The insurance industry is potentially wasting up to 3,000 working hours per company each year due to inflexible systems and processes, according to new research.
The study carried out by Quocirca and Mercato Solutions focussed on brokers and policy holders including those within the protection and health sector during Q3 2013.
It highlighted that inflexible, disparate processes and technology are all factors holding the industry back when it comes to driving sales.
Half of the companies interviewed identified they had inflexible systems and that improvements could be made internally to maximise sales time by offering a greater variety of products and more efficient deal processing.
This could lead to improved competition, customer experience, conversion rates and sales volume.
A significant amount of time is currently wasted by processes which fail to take full advantage of multiple channels or test new routes to market and alternative prospect audiences.
Respondents estimated that wasted time could total as much as 3,000 hours per company, per year.
The research indicates that inflexibility is preventing some fundamental processes from being undertaken. One in three stated they could not report confidently on customer satisfaction, one in eight could not report on sales-out and a staggering 3% did not believe their systems were compliant.
"The study shows the impact that inflexible systems and processes can have on revenue generation for insurance companies," says Rob Bamforth, principal analyst at Quocirca Research.
"Many of our respondents put a higher value on software tools that enable them to deliver products and services faster than on the ability of the IT department to support process change.
"This signifies a fundamental pain point that is holding insurance businesses back. Software that enables users to quickly and easily do the tasks they require without the need for abundant technical support will undoubtedly unlock revenue returns for the sector."
Until 31 December 2021
Totalling £591 million
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