Technological innovation will have a major impact on the insurance industry over the next five years, leading to increased efficiency, automation and a reduction in claims, according to a new survey.

A study by business information group Timetric – Technology in Insurance: Impact and Disruption – questioned 130 industry experts across the world.

About 88% expect technology to have significant or extreme impact on the industry within five years, and 86% believe it will reduce the value of incurred claims.

Timetric says technology will allow insurers to collect vast amounts of data, leading to operational efficiencies.

“Interconnected devices and sensors collecting and communicating data – the Internet of Things – renders data analytics truly efficient and insightful,” Senior Analyst Steffen Mueller said.

“Automation is expected to impact the industry because it will change the nature of transport, job roles and work routines, both inside and outside the insurance industry.

“This can eventually lead to a changed risk environment, where, for instance, liability is shifted away from people towards technology or software providers.”

Technology has negative implications too, with 65% of respondents considering cyber attacks a potential brake on insurance innovation.