MCE, technology to improve customer service

MCE, technology to improve customer service

As reported in Insurance Age February 2010, by Liz McMahon

Brokers are more optimistic about the year ahead than they were about 2009, according to recent research into the predicted levels of IT spend Brokers are more optimistic about the year ahead than they were about 2009, according to recent research into the predicted levels of IT spend.

A survey from CBI/PricewaterhouseCoopers (PwC), conducted in December 2008, found that 58% would be spending less on their IT. However, respondents were contacted, 36% said they were committed to an increased expenditure in this area, rising by a further 5% in December 2009.

Roy Clark, partner at PwC, said: "Most brokers still think the market is quite challenging and that conditions are tough. That said, they are much more optimistic than they were. Looking back a year ago, there was high uncertainty over what the market would do and brokers drafted their business plans quite prudently in an effort to only spend what they really needed to. Further through the recession, they are now in a slightly clearer position to budget more optimistically."

Lisa McPherson, managing director of Fresh Insurance Services Group, agreed 2009 had been a challenging year for the insurance industry, with costs rising and income being reduced in a competitive market.

"Investment into our IT systems gives the most potential to increase efficiency by reducing manual processes and improving our management information. Over the coming year, we will invest further in IT to reduce overheads," she added.

IT manager for MCE Insurance, Adam Parker, said: "As margins continue to be squeezed, brokers must continue to improve customer experiences while driving through significant business efficiencies. These efficiencies are made through increasing headcount in IT departments and working with insurer software houses and other software partners to deliver these results. And of course working with software providers means spending money. It is imperative that these changes continue to improve our award winning service standards."

In contrast to the broker responses, the survey found that insurers were pulling back from the market with 11% saying they intended to spend less on IT this year in comparison with the 58% who pledged to increase spending on technology in 2009.

Ms McPherson said: "IŠm not sure why insurers are spending less on IT. The only reason that I can think of is they may have spent a lot last year on their claims infrastructure, specifically reporting, as the results were quite poor. Now that this cost has been carried, they may not need to spend this year."

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