Insurance company leaders are now less apprehensive about digital transformation in the industry, according to a PwC global survey.

The proportion of CEO respondents concerned about the pace of technological change has dropped to 31% from 51% last year, and only 10% are worried about new entrants, down from more than 20%.

CEOs are also less worried about changing consumer behaviour, down to 21% from 31%.

Increasing use of artificial intelligence and machine learning has shifted companies to more proactive risk detection, intervention and prevention, according to the survey report.

Many insurers on the front line of digital transformation are in Asia, where a young demographic is more open to technology, PwC says.

The survey also shows a shortage of key skills is limiting growth prospects in the insurance sector.

Half of companies are unable to innovate effectively, 38% are missing growth targets and 64% find their “people costs” are rising more than expected.

Quality standards and customer experience are suffering in 48% of companies.

The data insurers receive is also limited. Of the CEOs who believe data on customer preferences in critical to their business, only 10% have access to comprehensive information.