The biggest hurdle to executing capital utilization plans forP&C insurers? Technology, according to 44% of respondentsin Towers Watson in its "P&C Insurance CFOSurvey."

Chief financial officers also say that data, human resources,know how and timing (all 30%) are the next biggest challenges toimplementation.

To address that need, half of all respondents plan to addadditional capital deployment to analytics, data and othertechnology-related areas in the next one to two years. CFOs saythey are somewhat or very likely to invest in core systems inpricing (74%), underwriting (74%), marketing/sales/distribution(65%), product development (65%) and claims management (65%).

But CFOs are relying on their companies' financial strength. At61%, this clearly ranks as the primary driver of capital use. At adistant second and third, opportunistic ventures (30%) and marketdemand for traditional products and channels (26%) also arefactors.

"The focus on financial strength, however, seems to be supportedby CFOs' concerns about the risks inherent in loss reserves," saysAlejandra Nolibos, director in Towers Watson's P&C business."They see reserve releases that may dry up soon and fear a turn inthe relatively benign claim environment we've experienced in thelast decade."

Indeed, the survery reports that 70% of respondents say thatreserve redundancies will run out within the next three years,which is on the minds of most. Three-quarters of CFOs are extremelyor moderately concerned about unexpected costs trends in thesocial, legislative and judicial environment, and 65% worry aboutgeneral claims and cost inflation.

Towers Watson provided an infographic of survey highlights.Click to expand.