Insurance Cos to adopt innovative IT for survival

by CXOtoday News Desk    Nov 07, 2012

insuranceConstant economic pressure will compel the insurance industry to take a more innovative approach to the role IT plays in their decision-making and operations, according to a new report by Ovum. A focus on mobile solutions, advanced analytics, and near-realtime systems will be key in the process said the analyst firm.

A series of economic issues will persist in 2013 as existed in 2012, which will lead to volatile financial markets, high rates of unemployment, and low rates of growth in the developed world - all of which is expected to make the 2013 economy a difficult environment in which to generate profitable growth.

Technology will play a central role in helping to combat falling revenues, with insurers focusing on strengthening channel management and making better decisions through analytics. It will be essential for insurers to optimize their core administration systems and make use of advanced analytics in order to remain competitive in the modern insurance market. Remaining in regulatory compliance will also become more of a pressing issue as deadlines for key regulations draw nearer.
“There is no hiding that 2013 will be another tough year for the insurance sector,” commented Barry Rabkin, Principal Analyst, Insurance Technology.

He added that the insurance demands of the growing middle class in the emerging economies and the continued economic growth in the Asia-Pacific region provide the only positive news for insurers as we approach 2013.

“A perfect storm of global events, the western recession, and incoming regulation means the industry must now adopt a technology-centric business model if they are to survive the coming years,” summed up Rabkin.