Many UK-based insurers are operating at a competitive disadvantage because of an over-reliance on paper-based systems, according to a new survey by Hyland Software, a leading specialist in transactional electronic content management (ECM).
The research, which was commissioned to create a snapshot of the current climate for the industry, polled insurers operating in the UK and internationally across a range of sectors, including motor, home, property, health and commercial on topics including investment priorities, responsiveness, legislation and overall priorities and trends.
Over half of those questioned (52%) said they did not have, or were not aware of having, an ECM system. Thirty per cent of those that had invested in the technology felt that their systems were not being used to full potential. In many cases, this was as a result of the system not being enforced, leading to a continued reliance on paper files, which in turn were delaying up to 74 per cent of claims.
The poll also showed that, as margins continue to grow tighter and more insurers are competing at global level, as many as 37 per cent had gone as far as to change their business model by diversifying into new sectors and increasing product and service lines. Even more insurers, however, (53%) said their firms had been forced to reduce head count in order to save budget.
“The fact that companies are seeking to increase service lines at a time when they are also reducing headcount shows that they are clearly feeling the pressure,” says Hyland Software senior industry manager, Charles Hanna. “To survive and compete in this tough marketplace, more firms must act now to put the necessary structure in place to deliver greater efficiencies.”
Despite the looming deadline for compliance in 2013, the Hyland Software survey also revealed that over a third (32%) of industry professionals have made little or no significant process changes in order to comply with Solvency II. Just 13 per cent of the 78 firms polled had, or planned to make changes, 19 per cent said that they had little or no information and had made few plans and 13 per cent admitted to being totally unprepared.
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