Insurers likely face a future that includes more regulations, more demanding consumers, more challenging investment markets, more catastrophe losses and much more data to be consumed, managed and analyzed, according to “Top Five Disrupters in the Next Five Years for Insurers,” a report from Novarica.
The top five potential disrupters to the P&C industry in the next five years, according to survey results, are: shifting market needs (42 percent), regulations (16 percent), big data and analytics (14 percent), catastrophes (11 percent) and the financial environment (9 percent), 9 percent of respondents choose “other.”
Life/annuity insurers largely had the same concerns: regulations (47 percent), financial environment (20 percent), shifting market needs (13 percent), big data and analytics (13 percent); 7 percent of respondents choose “other.”
Noting that insurers need a long-term vision that accounts for tomorrow’s issues, Novarica asked more than 80 insurer CIOs consider the biggest potential disrupters, as listed above, and asked what they are doing now to prepare.
To address these potential challenges, Novarica said, insurer IT leaders are investing in data and analytics capabilities to better understand and pricing risk, and building agility into their systems and organizations. The 82 participants in the survey included 7 large and 8 midsize life/annuity insurers, as well as 13 large and 44 midsize P&C insurers. Novarica describes large insurers as those with more than $1 billion in annual premium.
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