Insurers Eying Technology Investment

Hemmed in by a soft pricingenvironment as well as regulatory and legislative pressures, insurance executive are looking to invest in technology to allay these concerns, according to a recent KPMG survey.

The audit, tax and advisory firm questioned 100 senior executives in the insurance industry (from a number of lines of business) about their investment priorities, the challenges they currently face and those they expect to face in the coming year.

Asked to identify the highest-priority investment area for their company within the next 12 months, "technology" was the top response. Asked separately about merger and acquisitions, nearly two-thirds (63 percent) of respondents said their companies will be involved in a deal as a buyer or seller in the next two years-including 54 percent who say they'll be buyers.

When asked to identify the single initiative that company management will be spending its time and energy on in the next two years, 20 percent of respondents cited "investing in organic growth," followed by "cost reduction initiatives" at 15 percent, and "navigating changes in the regulatory environment" at 12 percent.

For reprint and licensing requests for this article, click here.
Policy adminstration
MORE FROM DIGITAL INSURANCE