The research highlights the discontent among insurance decision-makers over traditional rate service organizations (RSOs), an essential part of the insurance ecosystem. The findings were released by insurance technology leader Sure in its 2024 State of Digital Insurance Report.

The study emphasised that although Rate Service Organisations (RSOs) and their services are widely utilised in the insurance industry, nearly 75% of the participants hold the view that establishing, maintaining, and launching insurance programmes digitally requires significant work from traditional RSOs.

The problems with legacy RSOs go beyond the amount of work involved; they also include high expenses and constrained flexibility. Remarkably, 75% of respondents say they spend at least $1 million a year on insurance program implementation, while 31% say they spend at least $10 million.

Even with these large expenditures, just 12% of respondents say they are very satisfied with legacy RSOs. Even though effort and flexibility are the top priorities for insurance professionals, they turn out to be the main sources of frustration.

"These results are not surprising," said Wayne Slavin, co-founder and CEO of Sure, "having spent almost a decade partnering with global carriers and consumer brands to build and launch digital insurance programs." The insurance industry's pricing and infrastructure are a shambles, and the incumbent RSOs are largely to blame for this, having lagged behind the shift to totally digital insurance.

"Despite the fact that carriers are paying up to $10 million annually for the services of their RSOs to create and manage their insurance programs, the data reveals that there are surprisingly few customer satisfaction issues and widespread pain points. One would think that after spending so much money, time, and effort, contentment would be assured, but this isn't the case. In order to provide carriers and, ultimately, consumers looking for insurance options, the industry needs to find a new path ahead.