As we start the New Year, the unease of 2011 hasn’t faded away. Financial results remain unstable, in large measure due to external forces. Pervasive consumer computing is defining the service landscape. Regulation is spreading an umbrella of uncertainty across all insurance operations, globally.
The business drivers that insurance executives are encountering are among the most complex in the history of the industry. Events over the last year made it overwhelmingly clear that the industry is globally connected. An earthquake and tsunami in Japan, and floods in Thailand, drove supply chain losses across every continent. Economic crisis in select European countries have caused stock market plunges, decreasing the value of insurer investment portfolios, regardless of carrier location. The dominance of consumer computing requires changes to service delivery channels. Distributors, always a point of concern for insurers, are now wielding unprecedented economic power due to consolidation. Regulation which has historically been local is now global, with Solvency II being discussed in nearly every country.
Technology has clearly matured and the pace of innovation has accelerated. Data initiatives have taken on a strategic role. Analytics and models are proven business tools and must become enterprise assets. Carriers have invested in core system replacement and continue to do so. But how do you optimize the investment? This is a critical question that must be answered in 2012. Big data, social media, and sourcing strategies, including cloud, are not just hot topics, they are hot answers. These technologies along with five more that we believe are imperative, and differentiators, will be discussed in our webinar on January 17th.