As regulatory and management expectations for information to be delivered in a shorter time continue to rise, firms see cloud technology benefits but also adoption barriers.
In its 2021 EMEA-wide Life Financial Modelling Survey, WTW (Willis Towers Watson, NASDAQ: WTW), a leading global advisory, broking and solutions company, 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.