Continued economic pressure will force the insurance industry to take a more innovative approach to the role technology plays in their decision-making and operations, according to a report from research firm Ovum. A focus on mobile solutions, advanced analytics, and near-real-time systems will be key.
The report forecasts that a familiar litany of economic issues will persist in 2013 as existed in 2012: struggles with keeping the eurozone whole, protests in the streets, volatile financial markets, high rates of unemployment, and low rates of growth in the developed world all combining 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 optimise 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,” said Barry Rabkin, principal analyst, insurance technology at Ovum. “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.”
However, a London summit on the industry’s introduction of the technology cautions that testing and acceptance are still at an early stage and firms should proceed with caution.
Despite faster payment technologies, business-to-business payments by paper cheque show no sign of decline from three years ago.
A global survey of 200 corporate treasurers by Temenos and Ovum shows that many expect at least some banking services to relocate away from London.
A survey of corporate decision makers across Europe finds that chief executives in more than half of the businesses canvassed take responsibility for the issue of cybersecurity.