By Andreas Kißler
BERLIN (Dow Jones) – IT spending by German insurers rose by 15 percent to 5.5 billion euros in 2019 compared to the previous year. The IT cost ratio, which is calculated from the IT costs in relation to the gross premium income, also rose significantly, according to the German Insurance Association (GDV). While this was 2.3 percent in 2018, it was 2.5 percent a year later, according to the association’s annual IT survey.
The corona crisis year 2020 provided a further boost to digitization. “In addition to the ongoing modernization projects, there were additional expenses for new servers, licenses and end devices in order to be able to maintain business operations even in lockdown.” Significantly more has also been invested in the efficiency of network operations in order to guarantee the smooth operation of web conference systems.
The introduction of agile working methods and customer access channels followed. According to an ad hoc survey by GDV, the frequency of interaction on customer access channels has increased significantly in the wake of the pandemic – at the top by more than 20 percent for individual companies.
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(END) Dow Jones Newswires
January 18, 2021 06:10 ET (11:10 GMT)