Insurance firms plan big technology spending increase

Two thirds of insurance firms are planning to increase their IT budgets next year, according to a survey held at Acord Loma insurance systems forum.

Almost half (44%) claimed that increase is also likely to be significant – between 6-10% or more.

The survey revealed that as businesses look to combat competition and increase their market share, technology solutions have become a key priority. The study found that technology now ranks as a top two priority with 86% of respondents - it was ranked number one by 60%.

Respondents to the survey identified predictive modelling and analytics as having the highest value of any technology they plan to invest in - only 8% ranked cyber security as the most valued. Meanwhile, the highest area of investment is expected to be in Big Data and analytics. More than a quarter (27%), also said that mobile applications were likely to receive an increase in investment.

A third of respondents said that talent acquisition was now lower on their list of priorities. Only 11% ranked attracting qualified talent as their top challenge. Nearly half (48%) said instead that the ‘strategic sourcing of talent’ was their second highest priority as they look to increase efficiency, cost savings and overall competitiveness.