Investments in insurance technology will deliver returns this year, report claims

Investments in insurance technology will begin to deliver returns as economic conditions improve in 2014, according to Conning.

The insurance research firm’s study predicts stable results for the industry over the next year - despite there being uncertainty brought on by economic, political and regulatory developments. The report claimed this was due to the economic climate improving and technology initiatives, which many firms have been pursuing in recent years, starting to pay off.

“Economic drivers are mostly favourable, and many companies are beginning to reap the rewards of investments in technology and an increasingly analytical approach to the business,” said Stephan Christiansen, managing director at Conning.

The Conning study, “US and Global Insurance Industry Outlook: Improving Performance Amid Economic and Regulatory Challenges”, assessed the challenges the industry was facing and the potential insurer responses. It claimed the outlook for the global insurance industry was likely to be shaped by three key factors during 2014: economic climate, interest rate environment and regulation.

Steve Webersen, director of research at Conning, said: “Fragmented economic growth is creating new pockets of opportunity, while challenging established markets. As in the US growing regulatory convergence and complexity are increasingly commanding insurer attention and resources.”