,APAC

Technology tops risk for insurers in APAC

Multiple technology projects could put a strain on insurers.

Technology is the number one risk for insurers in the Asia Pacific and third globally according to the Insurance Banana Skins 2021 report by PwC.

According to the report, modernisation comes with a cost as juggling multiple technology modernisation projects can put a strain on the insurers especially when resources are required to strengthen cyber resilience simultaneously.

This is even more so for insurers with legacy platforms as it is more challenging for them to embed Robotic Process Automation and artificial intelligence in their daily processes. Insurers are aware that they need to reduce complexities over their existing systems and get rid of the drag by legacy technology however upgrading or migrating to a new platform is not an easy alternative due to the volume and long-tail data that the insurers hold.

“In certain instances, replacing the legacy systems may be more costly than continuing and building plugs around the existing ones. This is certainly not a straightforward decision which needs to be made in the context of the overall business strategy,” PwC said.

Additionally, the talent shortage is impacting digital transformation initiatives. There is great demand for IT specialists to support these digital transformation initiatives. PwC said these IT specialists need to be equipped with complementary skill sets including, insurance business knowledge, innovative skills, and project management skills

Meanwhile, crime, specifically cybercrime, is a growing risk for insurers, ranking second in APAC.

The report said that rapid digital transformation and remote working arrangements driven by the pandemic have brought about increased cybersecurity risk.

“As insurers move to digitalise most processes with greater reliance on automation, it is imperative that new processes and controls are designed properly with IT and data vulnerabilities comprehensively considered,” PwC said.

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Insurance industry’s profit for 2021 reached $14.78b
The company said it cannot pay all the claims for all of its COVID-19 policies.
Generali is investing around $190.47m in two joint ventures.
This is exclusively offered for the first year’s policyholders.
The tool measures a customers financial health whilst offering solutions.
One of its aims is to research insurance products for autonomous driving.
The insurance firm is set to release a mind health index tailored by country. 
The grant will be used to improve a digital assistance platform.
Life segment to revive in 2022, driven by increased awareness.
Motor insurance premium decline triggered this shift.
The regulator said it plans to implement this in mid-February.
He was recently the previous underwriting chief of Echo Re.
The insurer proved stable with core operating profits at ¥690b.
This is part of the firm's commitment to develop in-house talents.
Insurers sold 42,376 policies from 1 January up to 17 January.