Upgrading technology is the number one priority for insurers around the world, according to survey of senior executives by software provider AdvantageGo.
Respondents from London, Bermuda, North America and Switzerland said the need to upgrade technology was their top concern, followed by underwriting discipline, regulation and cyber security.
It was also found that three-quarters are involved in data analytics and big data projects, with more than half looking at machine learning, artificial intelligence (AI) and blockchain.
“Whether companies want to be ahead of the game or are simply anxious about being left behind, all sectors of the market are taking InsurTech seriously,” AdvantageGo executive vice-president, Adrian Morgan, said.
“On the one hand, there is an overwhelming recognition of the need to improve technology, but on the other, there is a concern about the rate at which the industry as a whole is adopting InsurTech solutions.”
The survey involved questioning 30 c-suite insurance and reinsurance professionals, finding that 81.5% consider insurance technology an opportunity, with none viewing it as a threat.
The respondents said they were using InsurTech in a variety of ways, streamlining costs and processes, improving insights for underwriters, and combining actuarial analytics with AI algorithms to increase efficiency.
The majority believe insurance technology will increase the profitability of their business, with “disruption” and “transformation” the two most frequently used words to describe InsurTech.
Almost half are hiring staff to meet the demands of the technology, with many admitting it has been a struggle attracting younger workers who still see insurance companies as “traditional” businesses.
Just over one-third are developing the technology in-house, while others are using third parties, partnering with new companies, or still waiting to see how InsurTech develops.
The respondents said that the most important factor when picking an InsurTech provider was a demonstrable capability, followed by a track record of successful delivery, customer-centric mind-set and industry knowledge.
“Our survey shows the value placed on partnering with proven providers that marry technological know-how with deep industry expertise,” Morgan added.
InsurTech is expected to help generate over $400bn (£312bn) worth of premiums worldwide by 2023, more than double the estimated $187bn today.
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