The latest survey shows that insurance consultants are more likely to embrace new technology.
The insurance industry is rich in data and takes advantage of extensive processes and forecasts. This makes it the ideal industry for technical intervention. Insurance-responsible CFOs agree.
In our latest study "CFO Reimagined: from driving the value to building the digital company", insurance consultants were more likely than their peers in other industries to believe that insight into new technology is an important requirement for their role. In fact, 45% was more likely to devote time to exploring the effects of new, disturbing technologies on business.
But no matter how interested insurance consultants are in technology, there are a number of formidable obstacles
Cost of new technology, however relevant it may be, can be prohibitive, especially if the technology is new and its value is non-existent on the market. . The estimated return on investment may also be insufficient. When the finance directors investigate new technology, they understand that the investment not only covers the cost of the technology itself, but the cost of aboard the business.
Information Security: In our survey, the respondents in insurance were more likely than those in other sectors who say that information security is a main obstacle to taking on the automation tools that would free up time and generate revenue in the business. This caution against security also applies to technologies such as cloud solutions, which are the key to digital transformation. Advanced analysis, which requires supercompatibility, works best when applied through cloud services. Therefore, cloud services should become the norm rather than the exception in insurance, and any doubt about the technology can prevent data analysis in insurance in the future.
When insurance companies overcome these risks and introduce new technologies into their businesses, we will see the beginning of a new era for CFOs, one where they will be challenged as never to translate data into financial impact.
In the next article in this series, I will discuss the trend towards financing ownership of data, and the competencies that have been set CFOs will have to rise to the challenge. Meanwhile, download the survey to read more about how CFOs in insurance feel about technology.
If you want to discuss ways to master technical innovation in your business strategically, please contact me at any time.