Technavio Forecasts European Insurance Tech Market to Grow at a CAGR of 3.74 Percent
September 08, 2015
The trend of customer empowerment has forced industries to make changes and transform their businesses to become more customer centric by leveraging social media, mobile, big data and other technologies. For industries that haven’t made these changes, customers nevertheless expect the same level of service as the ones that have already made the transition. According to Technavio's new report "Insurance Technology Market in Europe 2015-2019," the insurance industry seems to be lagging on the customer side of the technology.
The report says insurance firms are spending considerable amount of resources on IT risk management systems to identify, manage, optimize and mitigate risks. This is primarily being driven by several cyber-attacks and security breaches that have been reported because of the increased number of Internet users.
Currently, the top priorities for insurance organizations are asset classes, customer segments, functional departments and products. Because of the overall damage cyber-attacks can cause to insurers, and indeed all organizations, failure to manage these risks is not an option. According to Technavio, many insurance firms are struggling to secure clients' data to make investment decisions.
The key players in the Insurance Technology Market in Europe are Accenture, Agile (News - Alert) Financial Technologies, E&Y, HP, IBM, Mphasis, Oracle and Sopra Steria. Other vendors that were mentioned in the report also include, Amazon Web Service, BSB, Capgemini, Cognizant Technology Solutions (News - Alert), CSC, FICO, Genpact, Google, Informatica, Netapp, Polaris, Rackspace Hosting, Salesforce, SAP, Symantec, TCS, T-Systems, Verizon Communications, VMware and Wipro (News - Alert).
The analysts forecasts a compound annual growth rate (CAGR) of 3.74 percent during 2014-2019. The report covers the overview of the insurance technology market including the Political, Economic, Social and Technological (PEST) analysis of the insurance market, insurance brokerage market, and the adoption of third platform technologies such as cloud, big data and others by the insurance firms in Europe.
While the need to mitigate the risks cyber-attacks pose is very important, it is just as important for the insurance industry to implement technology addressing customer service.
“As customers are increasingly demanding real-time solutions, many insurance firms are aiming to be agile and event-driven architectures in the market. Mobile technology and social media are providing a cumulative number of sources for real-time data, which can be leveraged by insurance firms to a gain competitive advantage in the insurance technology market in Europe,” said a Technavio analyst.
Because of the many different countries in Europe, the growth in the insurance sector is going to vary depending on macroeconomic factors. The investment strategies in technology is expected to fuel the market during the forecast period by helping insurance companies reach their customers more effectively.
The growth will be driven by investments in digital marketing, data analytics and platforms for receiving and storing these insights. This will result in better product design and pricing, agency management, reporting, and improved customer-targeting processes.
Edited by Peter Bernstein