|In its 2021 EMEA-wide Life Financial Modelling Survey, WTW reveals that many life insurers are under significant pressure from regulators and management to improve their financial reporting, exacerbated by key barriers to adopting cloud technologies capable of transforming their modelling capabilities.|
| While participating firms said they were satisfied with their current financial modelling, the demand for ever increasing and faster reporting is causing concern for many insurers, with this pressure being most evident for multinationals. Firms taking part in the survey highlighted three barriers in particular that they will first need to overcome in order to meet this demand for improved speed and efficiency:|
• Managing costs – Companies are under constant pressure to improve operational efficiency and meet the demand for real time services, but at ever decreasing costs.
• Shortage of skilled resources – Having the right skill set and software is essential said survey respondents, particularly compared to the situation for companies still using old, obscure, or bespoke toolsets.
• Improve governance and auditability – The challenge of updating financial modelling practices that not only deliver faster but are also capable of delivering a greater level of control and auditability. More than 90% of survey respondents recognised that the application of automation technology – including business process automation, elastic cloud computing and Software as a Service (SaaS) – is a key priority to address these challenges. At the same time, a number of participating firms were cautious of the changes needed to implement new technology, naming transition cost, data and IT policies, and technical challenges as the main barriers to adoption.
Publication Date: 24 Feb 2022
Publication Site: Actuarial Post UK