Technological advancement will be most transformative insurance trend

The advancement of technology in insurance will be the trend most likely to transform the industry over the next five years, according to CEOs.

PwC’s annual global CEO survey revealed that demographic changes and shifts in global economic power both trailed behind technological advancement in the eyes of insurance leaders. It added that 86% of insurance CEOs believe these technological advancements will have transformed their business within the next 3 to 5 years.

The report said innovations, such as Big Data and analytics, could prove to be critical differentiators which give insurers the ability to understand and respond to customers’ needs. PwC claimed most insurers had been slow to adapt to these innovations however. The survey found that only 31% have completed or are executing change initiatives in data management and analytics.

The report said: “What once seemed to be far in the future is becoming reality in today’s insurance marketplace. The digital experience is increasingly defining service standards and new analytical techniques are offering the opportunity to more effectively price coverage and control risks.

“The insurers who take advantage of these developments will have clear insights into how the marketplace is changing, where they’re best able to compete, and be agile and decisive enough to respond quickly to important challenges and opportunities. They also will use the latest developments in technology to enhance customer profiling, reduce costs, and improve customer experience.”