A survey of global insurance CEOs found 81 percent believe they are already actively disrupting the sector. However, with less than half planning to increase their investment into innovation in the next three years, KPMG questions whether firms are taking bold enough steps to stay ahead of changing customer demands.
Gary Reader, Global Head of Insurance, KPMG International comments: “We’ve reached a point where the old models and processes are no longer fit for purpose. It’s going to take big steps – possibly an entirely new outlook – to drive growth in the future.”
The survey finds that whilst insurers are constrained by low profit margins and a low growth environment, CEOs could be more strategic with their budgets and target technology that is specific to what they hope to achieve. Better customer data is the only way to do that and insurers have to act now to better understand their customers so they can produce offerings that truly meet their customers’ needs and provide market differentiation.
Will Pritchett, Head of Technology, Insurance, KPMG UK, adds: “The pace of digitisation and the changing landscape of disruptive technologies is opening up ever greater possibilities for insurers and their customers. Customer centricity is now almost mandatory but the industry is still some way off delivering that completely, grappling with the legacy and security of their businesses whilst also trying to unlock the richness of data they hold and can source. The focus and ambition of organisations is undeniable, and notable progress has been made, but taking the pragmatic steps to truly re-engineer their business for the customer is proving harder.”
See the full report here. 16% of respondents were UK headquartered
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