Insurers will be forced to get tech savvy next year as the on-going economic pressure takes its toll, Ovum has said.
A new report from the group has predicted the insurance industry will have to take a more innovative approach to the role technology plays in their decision-making to combat falling revenues in 2013.
Insurers are expected to focus more on strengthening channel management and making better decisions through analytics.
Industry players will also need to optimise their core administration systems and make use of advanced analytics in order to remain competitive in the modern insurance market, said the report.
Barry Rabkin, principal analyst at Insurance Technology, commented: "There is no hiding that 2013 will be another tough year for the insurance sector.
"A perfect storm of global events, the western recession, and incoming regulation means the industry must now adopt a technology-centric business model if they are to survive the coming years."
The report added the Asia-Pacific and emerging economies are to remain resilient due to strong demand.
Rabkin said: "The insurance demands of the growing middle class in the emerging economies and the continued economic growth in the Asia-Pacific region provide the only positive news for insurers as we approach 2013."
