Best’s Special Report: Spanish Insurers Utilise New Technology, but Traditional Distribution Methods Dominate

LONDON–(BUSINESS WIRE)–Spanish insurers are increasingly using technology to cross-sell
products and target niche markets as growth opportunities domestically
and abroad become increasingly limited, according to a new special
report by AM Best.

AM Best’s analysis of the Spanish insurance market shows the sector
remains profitable, but margins are under pressure, and the low interest
rate environment places strain on investment returns. Companies have
previously attempted to grow outside their domestic territories into
Latin America, where they have a natural affinity with shared language
and cultures. However, in recent years, targeted countries have faced
more testing political and economic conditions.

The Best’s Special Report, titled “Spanish Insurers Utilise New
Technology, but Traditional Distribution Methods Dominate”, notes
Spanish insurers seeking to grow their top line are increasingly
focusing on the utilisation of technology to extract data from existing
customers. Buzzwords surrounding the sector include agility, disruption,
and transformation. Spanish insurers are exploring how big data,
blockchain, and artificial intelligence could increase efficiencies at a
time of growing mobile technology penetration. This would enable better
understanding of customer needs, and help improve customer experience.

Yvette Essen, director of research and report author, said: “In AM
Best’s view, effective use of technology can enable the Spanish primary
sector to improve engagement with customers and focus on product
development. An increase in resources dedicated to innovation and
disruptive technologies should be focused on enabling greater attention
to content, rather than solely providing alternative distribution

In AM Best’s opinion, Spanish primary insurers’ main objectives should
be increasing agility and efficiency, encouraging cross-selling, and
improving transparency. Effective use of technology may help reduce
transaction costs and enable access to clients in more remote locations.
The use of artificial intelligence to analyse historic information and
construct models may not only assist with pricing, but also client
retention, increasing conversion rates, and up-selling.

Jessica Botelho, senior financial analyst, said: “Investments in
technologies may contribute to streamlining processes, and increasing
efficiencies in a number of functions, including finance, underwriting
or claims management. AM Best would expect this to result in better
expense control, which, in the longer run, should translate into
stronger performance.”

To access a complimentary copy of this report, please visit

AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
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Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its


Jessica Botelho, CA
Senior Financial Analyst
20 7397 0310

Ghislain Le Cam, CFA, FRM
Director, Analytics
20 7397 0268

Yvette Essen
Director, Research, Communications
Media –
Europe, Middle East & Africa
+44 20 7397

Edem Kuenyehia
Director, Market Development &
20 7397 0280

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