Insurance

Majority of large insurance companies could increase IT budget

By Vincent Liu Liang

ZhongAn Fintech Research Institute has published a report that analyses the experience of domestic and foreign insurance companies dealing with the pandemic and put forward suggestions for the development of the industry in the post-pandemic era.

Due to social distancing during the pandemic, most insurance companies have to increase their expenditure to conduct online promotions, operate remote offices, purchase remote-operation equipment, support and maintain digital equipment systems and provide online training for employees.

The outbreak of the pandemic has accelerated their investment in digitalisation too, including self-service portals, real-time responsive interactive systems, mobile applications for policy services and claims settlement and call centre technology. Functions such as virtual inspection, autonomous claims and loss determination based on AI, and virtual dispute handling tools are also highly valued by the industry.

According to a survey of insurance company chief information officers (CIO) issued by Celent, 67% said they have begun to adjust and increase the company’s IT budget after the outbreak. Only 8% of large insurance company CIO said they will not increase their IT budget in 2020.

For small insurance companies, 16% showed that the proportion of their IT budgets will not increase in 2020. This may be because of their reduced income during this period.

Asia Insurance Review

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