Insurance companies enhance tech spending to meet evolving customer needs

Insurance companies are significantly ramping up their technology-related spending, including on artificial intelligence (AI), as the industry seeks to move towards the modern Cloud architecture to enhance the online experience of customers, employees, and distributors.

According to rough industry estimates, information technology (IT)-related expenses now account for nearly 10 per cent of the companies’ expenses. In the last five years, IT spending by insurers has seen robust growth, driven by digital transformation initiatives of companies to meet evolving consumer demands.