Is your company getting the most out of the technology tools that are available throughout the enterprise? Most people wouldn't want to admit publicly to such a problem, but a number of insurance professionals in Europe apparently don't believe they are getting the value they deserve from their technology.
In a survey conducted by Clear Path Analysis, 85 percent of European insurance risk professionals surveyed report that as they prepare for the coming of Solvency II–Europe's new regulatory requirements for the insurance industry–they are underutilizing insurance technology.
Seventy-four percent of those insurers surveyed believe one of their priorities needs to be the ability to rationalize which operation areas technology systems must address.
Also, 47 percent of respondents to the Clear Path Analysis survey report they are resisting the urge to acquire new systems due to the challenge presented by engaging staff and outsourced providers to use the new technology.
It's always interesting to see how our European neighbors are addressing their technology issues because U.S. insurers face many of the same problems. While Solvency II is much further along and its needs are more clear-cut, American insurers are facing a whole new set of regulations with the passing of the Dodd-Frank Act.
The new law establishes a Financial Stability and Oversight Council, which will create changes in the current system of state regulation as the council–among other things–can make recommendations to state regulators to apply new or heightened financial standards, according to the attorneys from Willkie Farr & Gallagher.
Finding the right technology to lead to better compliance will not be easy, which is one reason why the 85 percent figure cited by Clear Path Analysis is both scary and sobering.
It could mean a couple of things: Either the technology tools that are available in the EU are worthless, or the IT departments in European insurers are not selling the value of the technology to the business units.
I tend to believe it's the latter issue, though.
IT people have always cried out to be heard–the whole seat-at-the-table argument–but even more important for IT leaders is their ability to listen to their business partners and offer solutions to solve business issues. Solvency II is no doubt complex, but federal regulators know a thing or two about complexity themselves.
This is a challenging time for insurers–on each side of the pond. How are your listening skills? If you want to continue this discussion, go to my blog at www.tech-decisions.com and let me know what you think.
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