Aviva plans to reinvest some savings made through its business efficiency drive in improving predictive analytics and digital systems.
The multinational insurance provider noted a £360 million cost reduction in its full year results for 2013, and is targeting £400 million this year.
“We still have more to do and our expenses are still too high,” said Aviva Group CEO Mark Wilson in an interview for the results announcement. “Part of what we want to do is reallocate some of future expense reductions; we want to reallocate that to other initiatives. Initiatives like digital, initiatives like automation, initiatives like investment in our predictive analytics of our underwriting, which will improve our business long term.”
The investment will involve “using big data to be more disruptive in predictive analytics”, the company said.
Aviva announced in 2013 that it was rolling out a cloud-based planning and forecasting system from Anaplan to aid its financial team in scenario modelling.
Last month the firm announced the appointment of a new CIO, Monique Shivanandan, joining from her role as senior VP and chief technology officer (CTO) at credit card services company Capital One.
Shivanandan will be tasked with leading the digtial transformation at the company, reporting directly to Wilson.
"[Shivanandan] has a strong background leading and transforming digital capabilities at major companies,” said Wilson. “Monique will play an important role in Aviva's turnaround, ensuring we use new technology to serve our customers and partners simply and effectively.”