EY’s 2015: Global Insurance Outlook report predicts that both the life-annuity and property-casualty insurance sectors will undergo considerable transformation as the vast majority of insurers will adopt new technology-based solutions.
The report claimed that by investing in digital technology, insurers will enable customers to purchase insurance products more conveniently and make policies easier to understand as well as more comparable.
The EY study said that insurance firms would be spending most of their investment in cloud computing, data analytics and new modelling software. The report claimed that these solutions would help insurers tackle a number of key industry issues.
“Key challenges in 2015 include rising competition, generally soft pricing conditions and tight profit margins. To effectively surmount these problems, many insurers are investing technological solutions that improve front-end sales, distributions and customer service, and enhance back-end operation efficient and expense management,” the report said.
Shaun Crawford, EY’s global insurance sector leader, added that as insurers have adjusted to new digital platforms it had encouraged many of the leading companies to increase their IT spending.