Automation helping insurance margins
Thursday, 08 10 2017, Category: Technology, Country: World
The increasing trend among insurance companies to invest in automation, particularly around the claims handling process, has disrupted the insurance cycle and is the main reason margins are higher than some would have expected at this point in the cycle, according to analysts at J.P. Morgan.
Margins in the non-life insurance sector have remained strong despite the current cycle, which started in 2011 in Germany, nearing its end. Typically, and in cycles prior to 2007/2008, J.P. Morgan explains that the longer they go on the more companies turn their focus to top-line over profit, lowering prices at the margin and acquiring new clients that are less profitable at the start.