Insurers face tough times in 2013: Ovum
The insurance industry will need to take a more innovative approach to technology in its decision-making and operations if it wants to survive continuing economic pressures in 2013, according to Ovum.
In a new report it said that a focus on mobile solutions, advanced analytics and near-realtime systems were pivotal technologies insurers needed to adopt.
Ovum predicted continuing economic issues from the eurozone, volatile financial markets, high rates of unemployment and low growth rates in the developed world would impact on the insurance industry's ability to grow next year.
Insurers would need to strengthen channel management and utilise analytics to make better decisions and optimise core administration systems in order to remain competitive, it said.
Regulation could be an added burden on the industry, according to Ovum.
Ovum insurance technology principal analyst Barry Rabkin said there was no doubt it would be a tough year for insurers.
"The insurance demands of the growing middle class in the emerging economies and the continued economic growth in the Asia-Pacific region provide the only positive news for insurers as we approach 2013," he said.
"A perfect storm of global events, the western recession and incoming regulation means the industry must now adopt a technology-centric business model if they are to survive the coming years."
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