Insurers should be thinking about the transformational steps and technology solutions they can deploy to raise their game for long-term growth, according to two insurance-focused 2014 outlook reports released by the Deloitte Center for Financial Services.
An increasing focus on smartphone applications, aggregated data bureaus and the use of telematics by smaller carriers are all examples of technology innovation that will be increasingly used by the industry in the year ahead, according to the outlooks.
“Rather than wait for a rising economic tide to provide lift, insurers should consider transforming the ways they do business to compete more effectively,” said Gary Shaw, vice chairman, Deloitte LLP, and the national sector leader of Deloitte’s insurance group. “Regardless of the emerging favorable market conditions, insurers face a full host of challenges. We anticipate a growing number of organizations will re-evaluate their business models to more effectively compete in today’s marketplace.”
One of the two Deloitte reports focuses on the outlook for the property and casualty sector and the other highlights challenges for the life insurance and annuity space.
According to Deloitte, “many property and casualty insurers can look back at the past year and breathe a sigh of relief” as 2014 begins. “The economy continued its slow but steady growth, premium volume rose and catastrophe losses were relatively modest, leaving the industry’s capital position at record levels.