This year is expected to be an excellent year for insurance industry growth for a number of different reasons. During the financial meltdown of the past five years, the insurance industry has gained more than a few hard-earned lessons, and with those they are moving into the future strong. As the insurance industry grows, so to will the IT industry that serves it. However, it’s not as clear if their data security will grow as quickly.
Better tech tools
The insurance industry will grow in 2014, and it will leverage new information technology to do it. The insurance industry is now able to utilize social, mobile, analytic and cloud technologies to drive their business. The industry is making technology investments in the areas of underwriting, policy management and distribution. Digital adaptation will continue to change the industry and help it to grow.
Bigger IT budgets
As the technology advances, expect the insurance industry to assign bigger budgets to IT as well. Gartner research suggests that worldwide IT spending will grow by 3.6 percent in 2014. Discretionary spending is picking up, and the insurance industry will have more dollars to spend on the tech tools they need to grow and remain competitive.
Will the insurance industry be able to stay on top of security concerns as they increase their use of new and evolving technology tools? The insurance industry is increasingly using mobile technology and apps to improve customer service and experience. Policyholders expect this technology be made available to them, but with it comes security risks. Insurers have bigger and bigger data, personal data, and as the risk of cybercrime increases, they must keep privacy and security top of mind.
The insurance industry relies on trust. If customers cannot trust their insurers with personal data, and lots of it, the company is in trouble. With customers also expecting the latest technology and convenience of mobile apps, the insurance industry must take data privacy and cybersecurity very seriously. The technology that’s helping the industry grow is changing quickly, and information security must emerge just as fast.