Over half (53%) of insurance industry executives believe there are ‘huge' opportunities for insurers to improve efficiencies and cut costs, according to new research.
EDM's poll of insurance industry executives and insurance intermediaries, found that overall, only a third (31%) of all respondents believe that insurers will effectively improve efficiencies over the next three to five years.
Almost two-thirds (64%) of respondents to the EDM Group survey said the biggest opportunities for increasing efficiencies are with back office administration, with two-fifths (41%) identifying the customer retention function as also ripe for change.
Other areas highlighted are underwriting (25%), distribution (19%) and claims (18%.)
Three-fifths (59%) of respondents believed the digitisation of information will play a ‘very' significant role in helping insurers improve their levels of efficiency and reduce costs. A quarter (26%) thinks it will play a ‘small' role, with only 4% believing it will play no role at all.
Craig Campbell, head of insurance sector at EDM Group, said: "Cost management and efficiency are two of the biggest challenges for the insurance market. One of the most effective ways to manage both of these issues is the digitisation of information, which helps not just with costs and better efficiency but also in the delivery of best practice regulatory compliance and new business opportunities.
Information is at the heart of any insurance firm but all too often information such as customer records is not held in the most effective formats."
Campbell added: "The findings of our latest survey come at a time when regulators, investors and other stakeholders are demanding much better data management - and data validation - processes from insurance firms. It is crucial for insurance firms to make sure information and data is controlled and efficient - stakeholder demands for this will only get more intense going forward."