While there has been progress toward the pace of tech adoption, the speed from 2013 seems to have hit the brakes in 2014, with investments returning to what the industry saw in 2012, according to a report from Strategy Meets Action (SMA). And as technology advances, different insurance products and services will be necessary.
"In today's environment of fast-paced change, an insurer's commitment to innovation must never cease, must never pause, and must always keep a sense of urgency," says Denise Garth, SMA Partner and report author, along with Deb Smallwood, SMA Founder. "Each and every day, insurers must recommit to their innovation journeys … to avoid falling into operational traps."
The pressure from outside influencers and competitors has forced insurers to reprioritize their innovation goals, with enabling growth (42%) and profitability (30%) as the top drivers. To meet those goals, 38% of insurers are focusing on IT upgrades, as detailed in "Innovation in Insurance: Expanding Focus and Growing Momentum," a report based on the survey responses of 79 insurers from North America. Focusing on IT is a reflection of the work involved to modernize core systems, the movement to the cloud and experimenting with next-gen technologies.
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