Insurers have been urged to adopt a technology-centric business model if they are to survive the coming years, according to Barry Rabkin, principal analyst for insurance technology at Ovum.
In Rabkin’s view, 2013 will be a tough year for insurers, with the insurance demands of the growing middle class in the emerging economies and the continued economic growth in the Asia-Pacific region providing the only positive news for insurers as 2013 approaches.
Rabkin said: "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."
Ovum expects technology to play a central role in helping insurers to combat falling revenues, with providers focusing on strengthening channel management and making better decisions through analytics.
In particular, Ovum says it will be essential for insurers to optimize their core administration systems and make use of advanced analytics in order to remain competitive in the modern insurance market.