Now in its 22nd year, the Harvey Nash / KPMG CIO Survey 2020 is the largest IT leadership survey in the world, with over 4,200 responses from CIOs and technology executives across 83 countries.
The survey base includes a significant number of IT leaders in the insurance sector -- so what are their priorities and how are these being shaped by the COVID-19 pandemic?
Like all sectors, insurance businesses face a different landscape in the wake of COVID-19. A surge in customer inquiries and claims due to the pandemic, at the same time as the need to move staff and operations to a remote footing, put significant pressure on systems and ways of working. Although the sector proved itself adaptable, traditional insurers have historically lagged behind other sectors in digitization efforts.
However, insurance organization fared better than feared, overcoming the typical barriers (risk adverse, capital constrained, legacy systems) traditionally associated with the sector.
As expected, more recent entries, such as insurtechs, who had already invested heavily in technology that enabled better customer engagement, were better positioned entering the pandemic.
The IT priorities for the future are clear. Insurers need to drive up efficiencies through increasing digitization and the automation of manual processes such as claims, payments, and assessments -- in a way that also improves customer engagement. Another crucial focus is to leverage data & analytics for sharper insights into market trends, customer behaviors, fraud detection, underwriting risks and the profitability of different insurance lines as insurers create new products to improve the bottom line and maintain liquidity. In the post-COVID world, there will be much for insurance CIOs and their teams to deliver on the digital transformation agenda due to the high level of disruption to the sector.
The opportunity has never been greater for insurers to deliver on the digital transformation agenda but they must do it in a way that leverages data & analytics for sharper insights and improves the customer experience.
With technology more important than ever to organizations’ ability to survive and thrive, the opportunity has never been greater for CIOs to work as strategic partners with the business. Collaboration between the business and technology teams is increasing — this relationship is something that CIOs must build on to ensure their organization’s digital transformation success. CIOs must move quickly and holistically, to address the critical layers of the IT operating model — enhancing operational efficiency through automation, improving the customer experience through digitization and self-service options, and embedding emerging technology innovations for greater responsiveness and market speed.
KPMG firms are some of the largest providers of services to insurance organizations globally, we take a tailored approach to client issues with a focus on flexibility, adaptability, and innovation. We recognize that there are many on-ramps to supporting IT transformation and we’ve tailored our services accordingly: