Question

Rank the top five problems in insurance and investments from your perspective. Rank based on the urgency to solve.

Please use finance knowledge to answer the question with the full explanation. Thanks in advance.

Answer 1

Hi,

Please find my answer as below:

Top 5 problems in insurance and investments:

1) Technological change - In the age of digital modernization, it is very required to make the necessary technological change in systems and application and it should be user friendly for the customer. In the busy schedule, nobody has time to fill hard copy of forms and complete legal procedures. So, customer expectation is to complete all the process through online and user friendly. Even digital signature may be useful for the customer.

2) Customer Expectations - Customer expectation is to get 24 x 7 service to resolve any query whenever they require any help from business. Getting customer is easier, but managing the relationship with them is very difficult. So, need to focus on it.

3) Change to regulations and standards - It is another big challenge. Due to insurer and investor protection government is very concern and time to time policies and norms are changes to provide security to insurer and investors. So, with the changes, insurance and investment companies also needs to amend their policies time by time.

4) Cyber Security - In insurance and investment industry, there is a huge amount of monetary transaction is involved. This industry will probably be one of the hardest hit sector by cyber security if the security is not up to the mark. You need to proactively manage the threat of cyber incursion, be rest assured that your adverse consequences will be great one.

5) Fraud - There are people who try to make fraud and it is a challenging situation for insurance industry. The insurance companies usually fail to monitor each and every task, due to excessive workload and that’s the reason a number of frauds take place within the industry.

Hope this helps :)