The study revealed that for insurance firms the importance of digital technology was growing though, as the industry continued to move into a ‘business led, technology enabled world’. The report added that a data-focused culture was emerging and this would see insurers look to capture and analyse more data using technologies such as telematics and machine to machine systems.
The survey found that 82% respondents now plan to use digital technology to improve customer relationships over the next 3 years - compared to 65% over the last three. Almost half of respondents said they are also developing innovative propositions to meet changing customer preferences as a top priority over the next 2-3 years.
“Over half of the respondents we surveyed predict that digital distribution and servicing will surpass traditional channels within the next 5 years,” Mary Trussell, innovation and high growth markets lead at KPMG in the UK, explained.
The study also found that 43% of respondents believe the most important use of data and analytics is to improve top level decision making. Although it also found that 20% claim the greatest barrier in implementing a strategy for data and analytics is management buy-in.