Organisations that are sitting on old legacy systems wrongly believe they can keep up with competitors without addressing technology issues, according to Andy Nightingale, head of strategy and proposition at SSP.
He highlighted that despite a tough economic year, £38bn was spent online in the UK last year. Mr Nightingale added: "From an insurer perspective I think the industry has got a fair amount on its plate at the moment. Personal lines is as competitive as ever and aggregators have come in and shaken things up for them. As a result, insurers are really starting to look at how they distribute their products and what the right channels are.
"There are a lot of insurers assessing how the distribution landscape is changing and how technology is starting to drive innovation in terms of brand reinforcement and propositions. They are considering what they need to do and how that impacts their strategy. A lot of these insurers, however, are sitting on old legacy systems, and as a result are unlikely to be able to act quickly or efficiently enough to meet those demands."
Mr Nightingale added that there are still some organisations that feel that they can keep up with rivals without looking at technology.
"I think for me, technology is going to become the way, especially with detached distribution and brand dilution, that insurers engage with their customers," he said.
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