Insurers must maintain a ‘sense of urgency’ when it comes to innovation

Insurance companies must embrace and adopt new and innovative technology with continued urgency, in order to drive growth and profitability, a new report from Strategy Meets Action (SMA) has stated.

The Innovation in Insurance: Expanding Focus and Growing Momentum report claimed there has been a slowdown in the speed with which insurers have been adopting new technology in 2014 compared with last year. SMA claims that technology investments among insurance firms returned to their 2012 level this year.  

It warned, however, that outside competition and influencers are forcing insurance companies to make innovation a leading priority. In order to ensure these goals are met, 38% of the insurers which participated in the SMA survey said they were focusing on IT upgrades.

It added that experiments with next generation technology and the adoption of cloud services were primary components which insurers were using to modernise IT systems. 

According to Denise Garth, SMA Partner and co-author of the report: “In today’s environment of fast-paced change, an insurer’s commitment to innovation must never cease, never pause, and must always keep a sense of urgency.”

She added: “Each and every day, insurers must recommit to their innovations journeys… to avoid falling into operational traps.”