Sixty-five percent of Canadian insurers plan to increase spending on technology in 2015, according to research by Xchanging Insurance Services.
When asked about specific technology categories that would receive more investment in 2015, 31 percent cited quoting/underwriting portals as the top priority, followed by big data/analytics (28 percent) and mobile applications (20 percent).
When asked about their companies’ most valued claims-related technologies, more than half (54 percent) cited predictive modelling/analytics.
Only 14 percent of respondents said cyber security solutions were the most valued technology.
When asked about the top three challenges of 2015, modernisation of core technology infrastructure (23 percent), increased competition (23 percent), and developing innovative products and services (20 percent) were cited most.
Increasing market share (41 percent) and reaching customers in new ways and through multiple platforms (23 percent) were cited as the top two business goals, affirming the value placed on technologies like mobile applications.
Surprisingly, breaking into new insurance markets was ranked as the least important goal with less than one percent choosing it as the top business goal.
“With approximately $46 billion in direct premiums written, it’s clear that the Canadian market is growing exponentially,” said Sean Allen, vice president of sales for Xchanging Insurance Services, North America.
“It’s encouraging to see the market making a concerted and dedicated effort toward investing in modernising its technological infrastructure to better serve its growing customer base, capitalise on growth opportunities and ward off rising competition.”
The survey, undertaken in partnership with Insurance-Canada.ca, was conducted in October and November 2014 via Insurance-Canada.ca’s newsletter subscriber base and relevant Canadian insurance LinkedIn communities.
Eighty-three percent of respondents were from the property and casualty industry, with the remainder working in life and annuity, reinsurance and multi-line.
