Save a Pound to Spend a Pound
In today’s digital world, insurers - along with other service providers - have had to adjust their service levels to meet the demands of today’s consumer. Any insurer unable to make this adjustment will quickly lose out as customers demand a level of control in how, where, when and on what device they interact with the insurer.
Insurers, therefore, now have the dual challenge of managing their cost of operation, while at the same time adjusting their business model to respond to customer demand. If unsuccessful, they risk competitors or new entrants eroding their market. With many firms still grappling with the constraints of compliance and legacy IT infrastructure, there is often little wriggle room left for service innovation.
Indeed, the general consensus from a CSC survey has revealed that the majority of IT budgets are still being spent on maintenance and compliance, with 40% of respondents stating that they are spending over 70% of their IT budget just on running their organisation. The good news, however, is that we find efficiencies could be made.