Technology is Transforming the Insurance Industry

Ensuring growth is an overarching strategic objective of Insurance IT spending. However, much of it is consumed by upgrading legacy core systems and improving policy administration. But a CIO survey conducted by Novarica finds that Insurance IT budgets are shifting priorities to new and emerging technologies to enable growth and corporate agility.

Mobile apps, for instance, empower policy holders, agents and employees to conduct business on the go. Mobile deployment rates are poised to nearly double in 2016. Cloud/SaaS is now mainstream and allows insurance companies to bring new products to market faster and to improve operational agility.

Additionally, a new report from Business Insider examines the impact of IoT (Internet of Things – Internet connectivity to virtually every consumer device) on the Insurance industry. It cites opportunities such as 1) healthcare insurers providing consumers with free fitness trackers and offering lower premiums 2) home insurers installing in-home devices that warn of potential danger and 3) property insurance adjusters using drones to assess damages after a natural disaster.