There is overwhelming support in the cross-border life sector for using technology to improve service and operational efficiency to deliver better customer outcomes, according to a report by AILO (Association of International Life Offices) based on feedback from several member businesses.

The association's Technology Survey Report reveals that 90% of respondents believe technology is ‘crucial' to the future of their organisation. 

Participants in the survey were asked six questions covering a range of issues relating to technology, including its importance, benefits, implementation and adoption, plus the expected trends over the next five years. 

The full report is available exclusively to AILO members. Other key findings include: 

•    Winning new clients is a clear priority with 40% of respondents recognising the opportunity to invest in digital to meet stronger client and IFA expectations. 
•    70% of survey respondents said a lack of skilled people is the biggest challenge to successfully adopting next generation technology. Interestingly, whilst this was mainly expressed as technical skills (such as data science specialists) feedback also highlighted project managers and other roles that have a part to play in managing change.  
•    30% of respondents cited the technology burden of compliance (plus broader financial services regulations) as major challenges.

AILO carries out regular research as part of its remit to provide valuable management information for its members who operate in the UK, EU, UK Crown Dependencies, and the British Overseas Territories of Bermuda and the Cayman Islands.

Earlier this year it launched a new series of reports about specific areas of interest, all based on detailed surveys, and beginning with a report on distribution.

The Technology Survey Report - which is the second in this series - was written by Andrew Hubbard who is Chief Business Development Officer at Lumera, an insurtech business which is an AILO Associate Member. 

Hubbard thanked AILO members for taking the time to provide detailed and thoughtful responses, and added that the survey results show the AILO community is ‘unanimous in acknowledging that next generation technology will play a significant role in the customer-centric, conduct-conscious insurer of the future'.

He said: "The biggest challenge is finding the right people to deliver the change programmes required. The cross-border life sector needs to attract these skilled data scientists and change agents early in their careers, so this cohort develops the industry knowledge so relevant to our businesses."

AILO CEO Bob Pain said: "Thanks to Andrew's excellent work, and all of the members who participated in this research, we now have a detailed, sector wide view on the benefits, priorities and challenges we all face in the industry. In addition, we have a clear understanding of the current status of adoption and the most important technology trends that everyone in AILO needs to focus on over the next five years."

The full Technology Survey Report, and forthcoming studies which will focus on other specific areas of interest later this year, are available exclusively to AILO members. If you want to read the full report, but are not currently an AILO member, click here for details about how to join. 

AILO is currently working on four more reports, as follows: 
•    Finance Capital Management
•    Consumer Duty
•    European Cross-border Life Market 2022
•    Global Cross-border Life Market 2022