Insurance companies in the UK are responding to the post-Brexit world with planned technological investments and workforce changes, according to a new report by PwC.
The latest financial services survey conducted with CBI said general insurers will continue to invest in employment and staff training as they expect levels of business to rise over the next quarter.
Spending on technology and marketing will also increase further as insurers focus on reaching new customers, introducing new products and services and improving business efficiency.
“London is a global centre for insurance so it is reassuring to see UK companies say they intend to increase employment in the wake of the referendum result,” said Jonathan Howe, UK insurance leader at PwC.
“It seems insurers accept that uncertainty in the UK market will continue for the foreseeable future and, as a result, they are planning to up their game,” Howe added. “Investing in technology and talent has been a trend for some time now and insurance firms are thinking outside the box for transformational change in a post-Brexit world.”
Life insurers will also invest more in technology as they see a continued increase in valuable profitable new business, the study noted.
However, unlike general insurance firms, life insurers expect to reduce employment as a result of managing increasing operational costs and reducing pressures on margins.
The study also lamented that 33% of the UK’s general insurers have not analysed the Brexit’s potential impact on employees.
“It is surprising that a third of the industry has not yet taken steps to understand how the UK leaving the EU will impact its people,” Howe said.
“The sooner firms understand the potential impact, the sooner they can reassure staff and concentrate on making the most of the opportunities ahead.”
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