UK insurance sector to increase IT investment

Insurance firms will use IT to improve customer service

Regulatory pressures and recent cases of customer data exposure in the insurance sector could mean more investment in technology, according to research.

Insurance firms are looking at client-focused strategies and have recognised the need to invest in IT to support customer service say Pierre Audoin Consultants (PAC).

Software and IT services growth rates will decline from 2007 due to current economic conditions, but 2008 is still expected to grow by 8.6 per cent, says the study.

“The investment boost will be largely driven by momentum in the outsourcing segment, as insurers seek to increase cost efficiency in processing claims and service levels to customers,” it says.

Spending in application software will also increase through focus on reporting and monitoring tools, along with software-as-a-service (SaaS) for feedback and complaints handling and policy renewals.

Investment in CRM will rise to address service-related requirements from the Financial Services Authority (FSA).