Insurers face disruption from threats outside the industry

Insurers are facing a disruptive future as non-insurers threaten their territory, the Economist Intelligence Unit has claimed.

The market intelligence firm has claimed that almost a third (32%) of insurance executives see e-commerce players, such as Google and Amazon, as being the main threat to their business from outside the industry.

In response insurance executives were said to be ramping up their investment priorities to concentrate on the customer experience. Almost half (44%) said they will be investing in customer relations and more than a third (38%) will be prioritising the digital customer experience.

The report said: “Despite having been one of the first industries to use data processing on a large scale, insurers have acquired a reputation of lagging technologically over the past decades. However, recent innovations around Big Data and analytics allow insurers to reassert themselves as leaders.”

It added: “Insurers have increasingly moved towards a stronger consumer orientation in the age of e-commerce. Insurers’ efforts to meet expectations set by other industries have also accelerated with the advent of smart devices and anytime/anywhere computing. Combined with advances in data processing, the proliferation of these and other devices has enabled vastly expanded sharing, collection and analysis of data.”