Emerging technologies considered vital for future growth in insurance

Insurance executives are increasingly seeing emerging technology as vital to the future running of their business, according to SMA.

The insurance industry analyst claims that these solutions will be crucial for any firm attempting to develop a competitive edge in the market during 2014.

SMA claims most of the advanced technologies gaining ground in the insurance industry over the next 12 months will be the same as those in other sectors - data analytics systems, mobility solutions, collaboration tools and cloud computing. However, it also included telematics as a key next generation technology in insurance due to its potential for use in the automobile market.

The analyst said it was imperative that insurers assess the implications of these technologies as they will be instrumental in helping to provide better customer service and enabling businesses to become more cost effective.

“Next generation technologies play a vital role in insurers’ strategies and plans. Far from being an intellectual pursuit or an interesting trend in other industries, many insurers view advanced technologies as critical to satisfying the needs of customers and agents, running an efficient and profitable business, and providing a competitive edge in the marketplace,” the report said. “Each of these technologies creates opportunities and challenges for insurers.”