Global insurers are under increasing pressure from customers to invest in new technologies, and this is seen as a higher priority than business expansion or adapting to new regulations, according to a survey of 300 insurers conducted in conjunction with the Economist Intelligence Unit.
The report found that 86 percent of insurers are still challenged by legacy tech issues, with 93 per cent saying they need a “new IT infrastructure to integrate and manage data”, while only 38 per cent of respondents indicated they are “very effective” at turning “multiple data sources into actionable insights”.
“As insurers deliver tailored solutions driven by big data to consumers, they must also convert investment information into actionable insights for their portfolios,” said Pete Thurmond, head of insurance sector solutions, North America, at State Street.
“To bridge the digital divide, both technology and business managers must be proactive in proposing innovative solutions, prioritising technology advancements and offering actionable data and to support these changes to investment strategy.
“Misaligned objectives may be holding insurers back, with only 28 percent of respondents agreeing that their technology and business goals are in sync.”
