Data analytics will remain a priority technology project for insurance firms in 2014, according to a study by Novarica.
The insurance technology insights firm said that the deployment of these insurance systems would also elevate the significance of other IT projects within businesses, such as customer relationship management systems and general liability initiatives. As insurance companies look to make greater use of their data, the survey said advanced ‘big data’ projects were likely to increase as well.
The report claimed, however, that changes in investment levels were likely to be incremental and spending priorities are expected to remain fairly similar to 2013. Matthew Josefowicz, managing director at Novarica, claimed that most insurers were only looking to ‘get up to the bar, not over it’. He added that although new transformative technology was available its deployment required business leaders to re-evaluate their own current practices first.
He said: “While media, board members, and vendors push for immediate adoption and quickly incorporate the buzzwords into their vocabulary, actual changes in behaviour are slow and vary significantly by the enthusiasm levels of individual executives. ROI and concrete results are slow to manifest themselves, but anecdotal stories of huge business impact start to emerge.”
He added: “Eventually the capability goes mainstream and is incorporated into essentially every major business process of the company.”