Insurance firms should not wait for economic conditions to improve further before investing in technology, a new Deloitte report has claimed.
The advisory firm said that insurers are facing a number of significant challenges, such as customers’ increasing use of mobile technology and the need to integrate various data sources in to operations.
The report said firms should be looking to transform their business models to address these issues now and not delay until market performance seems more favourable.
“Technology upgrades will be priorities for insurers in 2014, according to the outlooks. Overall, organisations that have up until now made ad-hoc, shorter-term adjustments should be considering how a bolder investment in more transformational upgrades might better position their companies to remain competitive not just in 2014, but for the remainder of the decade," the report said.
Deloitte said insurers need to develop strategies which engage policy holders and improve the customer experience.
"There are usually tactical steps insurers could take to make a short-term course correction, and tweaks can often be implemented to adjust systems and processes," said Gary Shaw, vice chairman, Deloitte. "But to capitalise on emerging opportunities instead of being undermined by the disruptive changes likely to alter the competitive landscape, top insurance executives should be more predisposed towards bigger-picture innovations."