Almost all insurance companies plan to invest in new technology to address business challenges, according to a new survey conducted by IT managed services provider Redcentric.
The UK firm discovered that 82% of polled insurers intend to invest in new technology over the next year while over 50% of the companies plan on doing so in 2017.
Based on the survey findings, 45% of the insurance firms cited improving customer experience as the main reason for their planned investments in new technology.
“It’s evident the industry is reaching a point where change is becoming crucial – but insurers are often left wondering where the money for investment will come from,” said Redcentric chief technology officer Simon Michie.
Michie explained that for many companies, 70% of the IT budget is spent on daily maintenance operations.
“Insurers therefore have to balance managing IT systems and ensuring continued compliance with the need for strategic investment in technology which will transform their business for the better,” Michie said.
According to Redcentric, the need for insurers to invest in digital platforms came out of the Global Insurance Outlook released by Ernst & Young.
Redcentric said the industry “clearly listened” since insurers want to invest in new technology to improve customer experience.
The IT firm added that enhanced customer experience offer clients “flexible, user-friendly systems which simplify the complexity of the insurance sector.”
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