Survey highlights the growing interest insurers are showing in technology
Technology may soon be receiving more attention from the insurance industry. A new survey conducted by Xchanging shows that the industry is beginning to better understand the importance of technology and how it can be used to connect with and serve consumers. The insurance industry is notoriously slow in embracing new technology, opting to hold to traditional engagement methods that have been in used for decades. As technology begins to play a more important role in the daily lives of consumers, however, insurers are having to adapt or risk being left behind.
Lack of technological focus creates a talent gap in the industry
A lack of technological focus has created a talent gap within the industry. There are relatively few people that work in the insurance sector that are able to handle the technological challenges that the industry faces on a daily basis. The survey shows that only 11% of insurance organizations are concerned with attracting new talent that has some expertise in technology. This may bode poorly for the future and the industry’s current talent gap.
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Insurers are beginning to invest more in technology
While acquiring new talent may be a low priority for insurers, investing in technology is another story. The survey shows that 67% of insurers are expected to increase their IT budgets by 44% this year. Investing in new claims processing, risk modeling, and consumer engagement technology has become a top priority as well. Big data, in particular, has become quite important to insurers as it allows them to better fashion products for consumers and engage them in minimal ways.
Insurers that are slow to embrace technology could risk obsolescence
The insurance industry is one of the oldest industries in the world, but has not struggled to adapt to changing business, economic, and political landscapes throughout its long history. The advent of technology is challenging the industry’s adaptability, however, and those that cannot take technology more seriously could risk becoming obsolete, replaced by insurers that have even a modest understanding of how to connect with people on a technological level.