Insurance: Investment in technology
Major investment in technology should be the top priority for Insurance providers when it comes to improving profitability, according to Interim Partners' research amongst senior Insurance executives.
Interim Partners’ research found that a third (33%) of senior Insurance executives surveyed said that spending more on technology would boost profitability, followed by 21% who thought investing in new staff and developing new products should be insurance providers’ top priority to improve profitability.
A Principal, Insurance, Asset & Wealth at Interim Partners, comments:
“Firms failing to harness the power of new technologies, including big data analytics and social media profiling, could now be putting themselves at a real disadvantage.”
“Investment in technology increases efficiency and allows for the analysis of a much wider range of information when it comes to product pricing and strategy. Many senior managers now rate it much more highly in terms of impact than traditional routes taken to boost profitability, such as a quick hike in premiums.”
Digitalisation - improved customer experience
As a result of insurers increasingly digitalising their services, customers are now being offered products better tailored to their preferences, with customers now able to manage their products from their mobile or tablet.
Interim Partners comments:
“Digitalisation allows for more targeted marketing and means services can be better tailored to an individual customer’s needs, benefitting both insurers and customers alike.”
“In what is becoming a quick, self-serve industry, insurers that can significantly enhance the customer experience through digitalisation are at a distinct advantage over their rivals, helping to boost customer satisfaction, cut costs, and increase profit margins.”
“Interims are playing a key role in developing and implementing many of the innovative digital technologies that are helping some insurers stand out from the crowd.”
Big Data analytics
Senior executives emphasised the potential impact of big data analytics when it comes to the underwriting process, indicating that the biggest improvement will most likely be seen in auto-insurance (62%), followed by health (24%), then life (10%), then home (3%).
Interim Partners comments:
“Firms need to ensure that they have staff in place who are skilled enough to use and extract value from the information generated by big data analytics or social media profiling.”
“There is little sense in committing to a major investment if the supporting infrastructure is not in place to guarantee a return.”