1 in 3 insurance companies feel ill-prepared to face emerging trends
New Delhi: One in three insurance companies across the globe feel they are inadequately prepared to face emerging trends like impact of social media, role of advanced technology and challenges around talent attrition and retention, says a survey.
According to a survey by Towers Watson, a global professional services company, 29 percent of insurance companies are less equipped to manage the impact of social media, while 32 percent of respondents believe they are inadequately prepared to handle the role of advanced technology such as 'big data'.
Meanwhile, 33 percent of insurance companies think they are ill-prepared to handle workforce challenges around talent attraction and retention.
However, respondents around the world who participated in the Insurance Megatrends Survey said that trends related to capital management, regulatory constraints and economic volatility are of the greatest concern for the next several years, and a majority of respondents feel their companies are well prepared to address these challenges.
"The rather low priority given to new and emerging trends raises the question of whether insurers are devoting enough attention to issues that may have a huge impact on the industry down the road," said Tricia Guinn, Managing Director (Risk and Financial Services) at Towers Watson.
The survey, conducted in cooperation with International Insurance Society, looked at the trends of most concerns that are affecting or going to have an impact on insurers in each geographic region. More than 500 insurance experts participated in the global survey.
The survey findings also varied among regions.
Over the next five years, European respondents are more likely to consider regulations as their greatest concern while ranking talent statistically lower than other regions, the survey said.
Asia Pacific respondents are almost equally concerned about regulatory trends while giving comparatively higher rankings to the need for talent and social media's impact. North Americans are slightly less concerned about regulations than their counterparts, with higher priorities given to big data and extreme weather events, it added.