Insurers facing as much change in next 5 years as they did in last half century

Insurers are facing as much change in the next five years as they have in the last 50 years, according to PwC.

The advisory firm said the insurance industry was in a state of flux and was grappling with the disruptive impact of new technologies, new regulations and the changing expectations of consumers.

In its Insurance 2020 report it claimed most insurance leaders see technological advances as the trend most likely to transform their business over the next five years - 86% believe technology will impact them over this time period.

The report said: “As the impact of technology continues to gather pace, sensor, big data and other new analytical techniques could prove to be a critical differentiator by transforming insurers’ ability to understand and respond to customers’ needs.”

The research found, however, that only 31% have completed or are in the process of changing initiatives in data management and analytics.

“Most insurance CEOs are making plans for change, but most have yet to put them into action. Less than 40% of industry leaders believe that their sales, IT, HR, R&D and customer service are well prepared for the transformational developments ahead,” the report said. “Fewer than 40% have initiated plans to capitalise on these trends in the key areas of distribution, data analytics and innovation capacity.”