Major investment in technology should be the top priority for insurance providers when it comes to improving profitability, according to research by Interim Partners.
Interim’s research found that 33 percent of senior insurance executives surveyed said that spending more on technology would boost profitability, followed by 21 percent who thought investing in new staff and developing new products should be insurance providers’ top priority to improve profitability.
This compared with just 6 percent who thought that increasing margins by raising average premiums would help boost profitability.
Ben Johnson, principal of insurance, asset and wealth at Interim, commented: “Firms failing to harness the power of new technologies, including big data analytics and social media profiling, could now be putting themselves at a real disadvantage.”
