According to a recent survey carried out by Appian, the primary reasons that respondents embrace new technologies for business applications are:
- Improved customer experience
- Increased business agility
Looking ahead to the next 12 months, there are a number of technologies that insurers are considering to improve their businesses.
Health Insurers are becoming aware of Analytical Technology Benefits
According to a recent article, health insurers are still lagging behind P&C insurers in terms of technology adoption, although a recent study by Appian determined that data and analytics are the most important emerging technologies for 2015.
Data analytics provide insurers with improved insights into the data currently stored in their system. These insights can help make better decisions and ultimately save costs associated with fraud and risk management.
The decision on whether to build a platform internally, or purchase a platform to integrate with their existing system is the next challenge insurers face.
More financial services are adopting cloud technology
At present, 63% of businesses in the financial services industry utilize cloud computing. Experts predict that by the end of 2015, global end-user spending on cloud-based services is expected to be more than $180 billion. Cloud-based solutions have become a popular technology strategy in the industry due to cost effectiveness.
The ACA is changing the Landscape for Health Insurers
Up until now, health insurers have primarily focused on providing group products for employers, but the impending changes due to the ACA are putting the power into consumer’s hands.
Employees will now have control over the products that are important to them, changing the dynamics of current insurance systems. Insurers may need to update their current systems, and alter product portfolios to take these changes into account.
2015 is going to be an exciting year for the insurance industry and we look forward to seeing if these predictions come into play.