According to reports, Clearwater collaborated with specialist consultancy firm Sionic to conduct their research. The survey, carried out in September 2023, garnered responses from a diverse group of insurance professionals, including C-Level executives and Heads of Insurance, who hold operational decision-making roles within a wide spectrum of European insurers.
The report sheds light on the formidable challenges and promising opportunities that European insurers are grappling with in the midst of the digital transformation era. A unanimous consensus among respondents, totaling 100%, predicts a surge in the cost of IT over the next three years.
Moreover, a staggering 98% of European insurers acknowledge that adopting a robust digital data strategy is paramount to establishing a competitive edge for future success. This recognition highlights a growing awareness within the industry of the pivotal role data plays in navigating the evolving landscape.
In a noteworthy trend, the report reveals a majority of insurers are making the transition from on-premises to cloud-based technology for investment management and accounting. This strategic shift signifies a broader industry movement towards harnessing the flexibility and scalability offered by cloud solutions.
Anticipating a shift towards greater efficiency, the report foresees insurers leveraging managed services to unburden teams, allowing them to redirect their focus towards critical areas such as product innovation and overall business growth. This move reflects a proactive approach by insurers to stay ahead in an ever-evolving and competitive market.
As the insurance landscape grapples with the imperative of digital transformation, the findings of the Clearwater report serve as a comprehensive snapshot of the industry’s current challenges and the strategic shifts being embraced to forge a path towards future resilience and success.
Speaking about the report, Josef Sommeregger, Head of DACH at Clearwater Analytics, said: “Insurers that embrace a new digital operations model and access trusted data can rewrite their future. As such, finding the right partner and solution becomes crucial. The report succinctly underscores the path to operational excellence: a unified platform that consolidates, aggregates, reconciles and reports on all your investment data in a single place, enabling unprecedented enterprise visibility and decision support.
“To gain a clear advantage and leave behind legacy on-prem systems, choosing a SaaS-based data management solution is a clear way to reduce costs, while maintaining clear control and oversight of critical investment management and accounting functions.”
Author: Joanna England
