January 6, 2016 by Canadian Underwriter
Insurers’ adoption of cloud, mobile and big data tools are set to grow, with more than half of surveyed insurers deploying some cloud-based systems, according to a recently released report from research and advisory firm Novarica.
Although insurers continue to struggle with legacy systems, many are also deploying newer technologies, the report said. More than half of the 116 insurer chief information officers surveyed have deployed some cloud-based systems, and the number using big data technologies has doubled since 2014, Novarica noted in a press release on Wednesday. [click image below to enlarge]
The third annual emerging technology report tracks deployments in six key technology areas: social, mobile, analytics, big data, cloud and digital. These “hot topic” areas shared two main characteristics: they enable potentially disruptive changes in one or more areas of the insurance value chain or traditional company operating models; and they are “still discussed more than they are embraced or understood.”
“These six are often lumped together as ‘emerging technology areas’ by insurers, although they share little else in common,” said Matthew Josefowicz, president and CEO of Novarica, in the press release. “They cross consumer media and communications (social), technology platforms (mobile and cloud), tools (analytics, some parts of big data), and strategy (digital). But they all enable potentially disruptive changes in insurance value chain.”
The report also looks at changes in deployment rates over the past two years and discusses changes in how insurers are building business cases and quantifying the value of investments in these areas.
Participants in the survey included 25 large and 15 midsize life/annuity insurers and 21 large and 54 midsize property and casualty insurers. The dividing line between large and midsize in this case was US$1 billion in annual premiums. P&C insurers in the sample are primarily multi-line, but also include several specialty and commercial lines insurers, as well as a few mono-line workers’ compensation insurers and a couple of personal lines insurers.