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.”
On day one of SIBOS, panellists unanimously agreed that doing nothing to modernise payments was no longer safe bet for transaction banking.
Rising interest rates, excitement around blockchain use cases and cross-border payments were all hot topics at this year's AFP conference in San Deigo.
Today CGI and GTNews have announced the launch of the fifth annual Transaction Banking survey report, which offers which offers critical insight into the corporate-to-bank relationship.
The US dollar and debt yields falling on the North Korea missile test, treasury being a top target for cyber criminals and why treasurers aren't into real-time payments all hit the latest headlines in the world of treasury this week. Don't miss our ten top news stories from around the world.