While there has been progress toward the pace of tech adoption,the speed from 2013 seems to have hit the brakes in 2014, withinvestments returning to what the industry saw in 2012, accordingto a report from Strategy Meets Action (SMA). And as technologyadvances, different insurance products and services will benecessary.

"In today's environment of fast-paced change, an insurer'scommitment to innovation must never cease, must never pause, andmust always keep a sense of urgency," says Denise Garth, SMAPartner and report author, along with Deb Smallwood, SMA Founder."Each and every day, insurers must recommit to their innovationjourneys … to avoid falling into operational traps."

The pressure from outside influencers and competitors has forcedinsurers to reprioritize their innovation goals, with enablinggrowth (42%) and profitability (30%) as the top drivers. To meetthose goals, 38% of insurers are focusing on IT upgrades, asdetailed in "Innovation in Insurance: Expanding Focus andGrowing Momentum," a report based on the survey responsesof 79 insurers from North America. Focusing on ITis a reflection of the work involved to modernize core systems, themovement to the cloud and experimenting with next-gentechnologies.