According to a recent survey of insurance industry senior executives, a majority of respondents indicated technology is a critical element of their strategy for improving competitiveness. That's not surprising considering the important role technology plays in enabling nearly every key insurance business process. What is surprising, however, is fewer than half of those executives said technology actually is delivering that advantage.
With so much riding on technology, getting it right should be as important to insurance companies as, say, underwriting guidelines, product design, or pricing. Why then do many insurance executives report a considerable lag in technology results vs. expectations? And on the flip side, what are IT-savvy carriers doing differently that enables them to deliver great results reliably from technology?
First, let me clarify an important nuance. It seldom is the technology itself that produces disappointing results. In fact, a separate study of IT in financial services organizations showed companies using systems from the same vendor experienced significantly different results. In other words, the technology itself was but one determinant of results. The difference was attributable to several other factors, most notably how effectively those organizations implemented the technology.
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