Digital standstill in the real estate industry - despite AI and investments

Last year, the discussion surrounding the digital transformation in the Swiss construction and real estate industry expanded to include artificial intelligence. However, the latest edition of the Digital Real Estate Survey shows that the industry has not yet been able to exploit its potential profitably. The level of digital maturity is stagnating for the first time in four years.

Digital standstill in the real estate industry despite the integration of artificial intelligence. (Image: www.depositphotos.com)

In the Digital Real Estate Survey 2024, the Digital Real Estate Index was calculated for the sixth time. The index measures the extent to which real estate companies are dealing with digitalization and the extent to which they have already taken and implemented measures. The calculation is based on 25 indicators in five clusters and 12 technologies. On a scale of 1 to 10, the current digitalization maturity is rated at 4.6, which represents a decrease of 0.1 points across the entire market compared to the previous year for the first time since 2020. The Swiss index shows no change compared to the previous year. 

While planners and building contractors recorded progress thanks to building information modeling (BIM), the index for owners and investors remained unchanged. The decline in the assessment of the digital maturity level of property managers and facility management service providers compared to the previous year is striking. 

Investment in digitization slightly declining 

The digital standstill raises questions, particularly from a financial perspective: A considerable majority of around two thirds of the companies surveyed invest more than one percent of their turnover in innovation and digitalization, with one in five companies even investing more than five percent in these areas. However, as in the previous year, investments in large companies with over 250 employees continue to decline. Similarly, small companies do not show a stronger tendency to invest compared to medium-sized and large companies. Around 39% of companies with up to 49 employees spend around one percent or less of their turnover on innovation and digitalization.

The concerns expressed in the last study that the interest rate turnaround, supply chain problems and a difficult market environment could at least partially slow down the digital transformation appear to have been borne out. In contrast, the issue of sustainability and the corresponding regulatory requirements are proving to be a major driver of digitalization. Study director Dr. Joachim Baldegger explains: "This is particularly evident among property owners and investors. In previous studies, they always lagged slightly behind the other players in terms of digital maturity. This gap has been closed over the last two years. For the first time, they have caught up with or even overtaken the other roles in terms of digital maturity." 

AI at the peak of exaggerated expectations 

The analysis of relevant digital technologies in the industry confirms the flagging digital maturity. The only notable change concerns artificial intelligence and machine learning, which were relegated to the realm of inflated expectations on Gartner's hype cycle last year. "It seems that only a few of the respondents already recognize concrete use cases for this technology," explains Dr. Joachim Baldegger. "Only a slightly higher proportion of respondents (32%) confirmed that this technology is either being developed or is already in use. Compared to the previous year, this represents an increase of just 2 percent. Nevertheless, the proportion of companies planning to use AI has risen by four percentage points to 26%." 

In contrast, Building Information Modeling (BIM) continues to establish itself in the industry and is becoming increasingly important across almost all roles. Two fifths of respondents use BIM and one fifth (21%) are currently developing this technology (and methodology). It is becoming apparent that the longer BIM is used, the more it will also become an issue for the operational phase. The importance of BIM as the basis for a consistent data model of the building (digital twin) seems to be slowly but surely gaining acceptance in the market.

Smart buildings remain on trend 

BIM also paves the way for the increased use of intelligent building technologies and the realization of smart buildings. Smart buildings are still a rarity: only ten percent of respondents state that their own properties are already able to network the digital and analog worlds in a central data platform. Nevertheless, a lot is happening in this area: data is hardly ever read and evaluated manually. Only 16 percent of respondents have no digital measuring instruments at all.  

Conserving resources plays the most important role here. 91% of respondents confirm its high to very high importance and almost 100% state that they measure consumption data for their buildings. Commercial and specialist properties are ahead in this respect. They measure and evaluate data to a much greater extent than other property categories. Other advantages of a smart building, such as an increase in user experience, comfort and wellbeing, remain of secondary importance to the survey participants for the time being. 

Source: www.pom.ch

Eraneos Group strengthens its Board of Directors

The Eraneos Group announces the appointment of Astrid Rauchfuss and Dr. Daniel Ritz to its Board of Directors. The appointment of the two proven experts is a strategic step for the management and technology consultancy on its way to strengthening its influence in the industry, its growth course and expanding its international presence.

Eraneos Group expands its Board of Directors with Astrid Rauchfuss and Dr. Daniel Ritz. (Image: www.eraneos.com)

Expansion of global presence

The decision to expand the Board of Directors reflects the robust development of the Eraneos Group since the formal consolidation of the international company network in 2021. From its original locations in Switzerland, Germany, the Netherlands and Spain, the Eraneos Group continues to pursue a sustainable course of expansion. The company currently employs more than 1,075 people at thirteen locations in eight countries.

Strengthening the platform for strategic growth

The Group's ambitious growth strategy extends beyond geographical borders. As a recognized industry leader in the field of digitalization and technology consulting, the Eraneos Group uses its knowledge and core competencies to design and manage successful digital transformation processes for its clients. With the aim of expanding its competence portfolio, the Group is building future-oriented expertise to provide management consulting services that enable digital transformation solutions - including cybersecurity, cloud computing, data and AI. Astrid Rauchfuss and Daniel Ritz will bring their knowledge, expertise and leadership skills to the Board of Directors to drive this vision forward.

"I am delighted to announce the addition of Astrid Rauchfuss and Daniel Ritz to our Board of Directors. Both are experienced board members who, with their wealth of expertise and strategic vision, will support us in strengthening our Group as a strong, international point of contact for shaping the digital transformation," explains Chairman of the Board of Directors Calvin Grieder.

Astrid Rauchfuss, MBA Insead and MSc Physics LMU Munich, has been working in the technology and telecommunications industry for over 23 years and specializes in strategic programs. She is a former Managing Director and Partner of a global consultancy and has led B2B telecommunications companies around the world. Astrid Rauchfuss has also held various positions at Bell Labs, Lucent, Siemens and the Fraunhofer Institute. She is a board member of Orcan Energy, Exeger, Neterra and the Joblinge Foundation.

Daniel Ritz, Dr. oec. HSG, lic. oec. inform. HSG, is an experienced CEO and non-executive member of the Board of Directors with a background in management consulting at a global consulting firm. He has worked and lived in both developed and emerging markets in Europe, the US, the Middle East and Asia. After a long career in the telecommunications industry, Ritz is currently CEO of the Walter Group based in Vienna. He is a member of the supervisory board of Beyon, where he represents the Bahraini sovereign wealth fund Mumtalakat.

The Board of Directors welcomes Astrid Rauchfuss and Daniel Ritz to the Eraneos Group with effect from February 2024.

Source: www.eraneos.com

Lucerne Cantonal Hospital introduces AI shift planning with Polypoint and Microsoft

Lucerne Cantonal Hospital (LUKS) is one of the first hospitals in Switzerland to introduce a new planning app for employees that is seamlessly integrated into an AI-controlled shift planning system, making it a pioneer in the field.

LUKS introduces automated duty scheduling in collaboration with Polypoint and Microsoft Switzerland. (Image: www.depositphotos.com)

In collaboration with Polypoint and Microsoft Switzerland, Luks is introducing automated duty scheduling. The aim is to significantly reduce planning effort, create more time for core tasks and increase employee satisfaction. Following successful pilot tests, the automated planning system is to be introduced at LUKS in the first half of 2024.  

Shift planning in hospitals is a demanding and time-consuming process in which both staff requirements and employee preferences must be carefully considered. In order to make this complex planning process more efficient and increase employee satisfaction by taking better account of preferences, LUKS is introducing an AI-driven, automated planning system: A new Microsoft Teams 365 app is integrated, which encourages active employee participation: Employees enter their shift preferences into the new Microsoft Teams app, which then feeds the information directly into the AI in the Polypoint backend and creates draft schedules.

Increase in productivity and employee satisfaction

The pilot test has shown that the use of the Teams App has reduced the planning effort by two thirds, freeing up resources for the staff's core tasks, which benefits patients. Supervisors find this a valuable tool that significantly reduces their workload.

During the test phase, LUKS recorded fewer change requests, more positive feedback from employees and was pleased with the great potential of automated planning. It was therefore crucial for LUKS to continue using and expanding the AI-controlled planning system after the pilot phase.

The LUKS project, with AI-driven automated duty scheduling, demonstrates a commitment to technology as a means for positive change that addresses healthcare challenges and makes a constructive contribution to the Swiss healthcare system. The hospital is establishing itself as a pioneer in efficiency, employee satisfaction and collaborative innovation. The new planning process was successfully tested in pilot phases in selected care departments. Based on the positive results, a gradual introduction in all nursing departments is planned from mid-2024 and a comprehensive implementation at all LUKS Group sites by 2026.

Source: www.microsoft.com

Augmented reality in the industry

Convenient, easy to use and affordable - with the new AR glasses "Arc 2", Almer Technologies is setting new standards for augmented reality in the industrial environment. In contrast to previous smart glasses, which are heavy, complex and expensive, the data glasses score points with unprecedented technical specifications and are ready for immediate use.

The Arc 2 enables a new type of communication in industrial environments. (Image: www.almer.com)

The Arc 2 from Almer Technologies enables a new type of communication in the field of remote maintenance and customer service for industry. The smart glasses make it easy to optimize processes and thus save time and money. Weighing just 179 grams, the AR glasses set new standards in terms of wearing comfort compared to similar AR glasses. With improved functions and a sophisticated design, the Almer Arc 2 is the solution for a wide range of challenges in the modern industrial working environment.

New features and new look

Compared to its predecessor, the Almer Arc 2 is characterized by a display that has been doubled in brightness. This means that it can also be used outdoors in bright sunlight without any problems. Thanks to the integration of loudspeakers, spontaneous phone calls can be taken without additional headphones. The powerful microphones ensure clear communication even in noisy environments. With 25 megapixels and autofocus, the camera delivers exceptional image quality. Even when zooming, details remain razor sharp. An integrated light provides practical illumination for dark work areas. An additional headlamp becomes obsolete. Thanks to the quick-charging function, the Arc 2 is recharged to 80 percent within 15 minutes.

Put it on and get started straight away

Thanks to a monthly subscription system for both the hardware from Almer and the necessary software, which comes from partner TeamViewer, the purchase costs of the Arc 2 remain low. However, the data glasses are particularly impressive due to their ease of use. "Our solution is 'enterprise-ready'. Users can deploy the glasses immediately and use them for many different purposes," says Sebastian Beetschen, CEO of Almer Technologies. Renowned companies such as the SFS Group and Cablex/Swisscom have also been won over by the wearing comfort and easy integration into existing work processes in production environments and during the installation, maintenance and troubleshooting of complex machines.

Source: www.almer.com

Swiss TecLadies: Promoting young women in the Swiss technology world

Swiss TecLadies, the national support program of the Swiss Academy of Engineering Sciences SATW, launches the 2024/2025 edition. From February 19 to April 1, 2024, young women between the ages of 14 and 19 throughout Switzerland are encouraged to apply for one of the 100 available places in the Swiss TecLadies mentoring program.

The Swiss TecLadies mentoring program offers young women the opportunity to explore science and technology. (www.tecladies.ch)

The Swiss TecLadies mentoring program offers young women between the ages of 14 and 19 the opportunity to explore science and technology by supporting them at various levels. 

100 free places to immerse yourself in the world of science and technology 

Applications for the 2024/2025 edition are open from February 19 to April 1, 2024. To publicize this unique opportunity, Swiss TecLadies is launching a national communication campaign to invite young women from all over the country to register.  

For seven months, participants have the opportunity to receive individual support from experienced mentors and gain an insight into working life. Through the program's numerous activities, you can familiarize yourself with the diversity of technical professions while developing new skills and strengthening your personality. The mentoring program also offers the opportunity to join a community of motivated and inspiring women of all ages who are active in the fields of science and technology and to network with other young women with similar interests.

Committed partners 

The program will be launched on 28 September 2024 at the #wetechtogether conference in Zurich and will conclude on 5 April 2025 at the National Sports Center in Tenero (TI). During these seven months, visits to companies and research institutions are on the agenda, including CSEM (12.11.2024), Google (27.11.2024), CERN (31.01.2025), EPFL (8.03.2025), CSCS, SUPSI, USI and the Ideatorio. Personal development modules and workshops in project mode (with Intrinsic in Zurich on 1-2.11.2024 and 10-11.01.2025) round off the offer. The young women can also take part in all TecDays. TecDays are events at upper secondary schools that are dedicated to technology. 

The program is financially supported by the Swiss Academies of Arts and Sciences and the Werner Siemens Foundation. 

A support program with impact  

More than 250 young women have benefited since 2018: The mentoring program supports and contributes to a change in mentality. This is fundamental to counteracting gender stereotypes and thus also the shortage of workers in technical professions.  

Source and more information: www.tecladies.ch

Swiss cyberspace study: 2.5 million potential security vulnerabilities discovered

The results of a scientific scan of Swiss cyberspace, i.e. all IT infrastructures connected to the public Internet, are being presented today at the Swiss Cyber Security Days. Over 2.5 million potential vulnerabilities were identified in Swiss cyberspace. Of these, over one million are rated as critical or high.

Over 2.5 million potential vulnerabilities have been identified in the CH cyberspace. (Image: www.pexels.com)

The report presented by Dreamlab Technologies CEO Nicolas Mayencourt and Professor Marc K. Peter at the Swiss Cyber Security Days 2024 in Bern shows what a nation or cybercriminals would see if they analyzed Swiss cyberspace for possible attacks. The scan was carried out using the CyObs software solution. CyObs measures the so-called external attack surface and inventories all IT infrastructures connected to the internet (such as servers and firewalls). This also provides an overview of potential vulnerabilities, i.e. the attack surface on the Swiss Internet.

Key findings from the CyObs Scan Switzerland 2024:

  • In Swiss cyberspace, 3,235,826 active IPv4 addresses assigned to Switzerland and 1,885,471 active domains were found.
  • The CyObs scan identified 2.5 million potential vulnerabilities (based on metadata or the version number of the software). Of these, 421,735 are classified as critical and 727,557 as high (critical vulnerabilities are those with a CVSS score of 9.0-10, high vulnerabilities are those with a CVSS score of 7.0-8.9).
  • Only 18.9% of the servers for active domains are located in the Swiss IP range; 81.1% of the servers are located outside Swiss cyberspace.
  • Only around 13.4% of DNS servers are located in the Swiss IP range; 86.6% are outside Switzerland. They provide DNS services for 50.9% of the domains in Swiss cyberspace.
  • Only 29.4% of mail exchange servers are located in Swiss cyberspace. They provide 59.4% of the domains with mail services.

Potential vulnerabilities include operating systems that are no longer supported and have documented security vulnerabilities, firewalls that have not been updated, unprotected databases, vulnerable websites (where, for example, users' passwords can be stolen), connected industrial devices (with vulnerabilities and in many cases without upstream firewalls) and FTP servers.

In addition, 604 active domains and 439 active IP4 addresses of the Swiss Federal Administration (admin.ch) were identified in Swiss cyberspace. The scan revealed 781 potential vulnerabilities, of which 18% are rated as critical and 25% as high. Most of the critical potential vulnerabilities in the Internet infrastructure of the Swiss Federal Administration are outdated versions of OpenSSH and Apache HTTPD.

Nicolas Mayencourt and Marc K. Peter conclude their keynote speech with the call that Switzerland has great potential to establish basic cyber hygiene in national cyberspace. The public discussion on national cybersecurity is the starting point for a national cybersecurity strategy. It forms the foundation of the digital society and places the issues of digital rights, privacy and product security for its citizens at the center of the political and economic investments that are inevitable with the digital transformation.

Source and further information: www.dreamlab.net

New software innovations from the old town of Chur

The Swiss software company M&F Engineering has opened a branch office in the old town of Chur. New jobs, exciting trainee positions and individual software solutions for technology and industrial companies bring innovative impetus to the cantonal capital.

M&F Engineering opens a branch in the old town of Chur. (Image: www.m-f.ch)

"We've been based at Martinsplatz in Chur since last fall," says Riccardo Gubser, head of the newest M&F location. The new branch enables the Swiss software company to be closer to its customers in Eastern Switzerland, including companies such as Trumpf and Hamilton Medical, as well as Gietz in Gossau, St. Gallen.

Proximity to regional technology and industrial companies

"In addition to the proximity to regional industry, we appreciate the easy accessibility and, of course, the privileged location in one of the most beautiful corners of Chur," says Riccardo Gubser, summarizing the reasons for choosing the location. With topics such as process digitization and artificial intelligence, M&F Engineering is characterized by curiosity and a spirit of innovation. The software company thus appeals to industrial and technology companies that want to optimize their development or production processes.

Riccardo Gubser - manager of the newest M&F location. (Image: www.m-f.ch)

Trainee program and cooperation with FHGR

On the other hand, M&F Engineering is dependent on competent employees. "We are always interested in talented software engineers and, together with 25 partner companies, we offer a practical trainee program for university graduates," explains Riccardo Gubser. The company is also already working with the University of Applied Sciences of the Grisons: M&F Engineering acts as a partner in two fields of study and provides students with valuable practical insights into Computational and Data Science and Artificial Intelligence in Software Engineering (AISE).

Source: www.m-f.ch

Investment companies want to develop a global standard for calculating avoidable emissions

Mirova and Robeco have teamed up with I Care from Bearing Point and Quantis to establish an initiative to develop a global database of greenhouse gas emission reduction factors.

A database is to standardize and make transparent the calculation of emissions prevented by various low-carbon or sustainable technologies. (Image: www.depositphotos.com)

This database is intended to standardize and make transparent the calculation of emissions prevented by various low-carbon or sustainable technologies. The initiative is supported by ten founding partners with a total asset value of over USD 2 trillion.

A global standard for assessing avoided emissions

The energy transition requires a shift away from carbon-based activities, so decarbonized alternatives must also be available. While the data currently reported by companies on their direct greenhouse gas (GHG) emissions and estimated indirect emissions (Scope 2, Scope 3) is based on a solid methodological foundation, other metrics are needed to identify the respective contributions and compare solutions. If it is important to consider all the resources and recyclability of components that play a role in the production of an electric vehicle, it is also important to understand and measure the carbon emissions that can be avoided by an electric vehicle in a transportation sector that is still heavily dependent on internal combustion engines.

The development of a standard for a global database of emission avoidance factors is an important step for many economic players. For the financial sector, this initiative will provide estimates of the emissions avoided by the activities financed and make them transparent and comparable. If such estimates are implemented in a standardized way for a wide range of solutions, they will make it possible to direct investments towards the solutions with the greatest potential for decarbonization, depending on where they are located. For companies, project sponsors or financiers and consultants, this database should enable transparent calculations that refer to a recognized external standard. The database should enable data providers to estimate avoided emissions for a wide range of investments, complementing existing measures of climate impact that are currently too imprecise or binary.

A standardized and transparent database

The database, created by I Care by Bearing Point and Quantis, will initially include 80 specifically defined low-carbon solutions (energy from biomass, recycled plastic, low-carbon concrete). The geographical differentiation of the reference scenarios considered for each solution and the different links in the value chains of these solutions should lead to the creation of approximately 9,600 different abatement factors in the first phase, which will end in Q4 2024.

The creation of a standardized and transparent database of abatement factors should make it possible to quantify, compare and verify the emissions prevented by companies and projects and thus promote the redirection of financial flows into investments that drive decarbonization.

Each emission factor contains details of the assumptions made, in particular:

  • The functional unit used
  • The carbon footprint of the solution
  • The reference scenario used
  • The service life of the solution
  • The time value of carbon
  • The rebound effect

Precise specifications are to be provided for all these parameters and updated annually. The database should also enable more detailed calculations, depending on the extent of access to the data. For example, a company that has carried out a "life cycle" analysis of its solution could change the parameters to obtain a more accurate abatement factor. The scope of the database will be gradually expanded to include many other low-carbon or environmentally friendly solutions. The development of the database and the selection of methodologies will be overseen by a technical committee made up of the key organizations behind the current avoided emissions standards.

The development of the database should have started in January 2024 and a first version should be made available to all stakeholders who need to calculate avoided emissions - including companies, consultants, impact measurement software developers, financial institutions and data providers. The data providers that calculate emissions at company and asset level will be involved in building the factor database and will need to follow a protocol for its application.

Lucian Peppelenbos Climate and Biodiversity Strategist at Robeco comments: "Avoided emissions are the missing piece of the puzzle when it comes to facilitating the financing of change. At a global level, much more capital needs to flow into climate solutions. This metric can help direct capital flows to companies that offer the most effective climate solutions. With broad support for this initiative from investors, academics and other stakeholders, we hope to establish the avoided emissions metric as a standard that can be used alongside alignment metrics to identify companies that are critical to the net zero transition. We look forward to working with Mirova, I Care and Quantis, as well as the 12 other sponsors, to achieve this goal."

Source: www.robeco.com

The AI tool "Plain" for comprehensible communication

In many companies, documents are often so complex that only experts can understand them. This jeopardizes growth, quality and safety. Misunderstandings in safety-critical documents can even lead to injuries or fatalities. TÜV Rheinland explains why documentation is often so difficult to understand - and how AI software can help.

Unclear language in communication can lead to accidents and serious defects in the worst-case scenario. AI can help with translation. (Image: www.depositphotos.com)

Complex documents exclude employees

The aim behind documentation in companies is usually to obtain a certificate, explains TÜV Rheinland in a blog post. The target group is often not the employees, but the people who certify the company. "The language of typical system documentation is 'auditory', i.e. geared towards the standards, the auditors and obtaining the certificate," writes TÜV Rheinland in its blog (QM-aktuell.de). This excludes many employees from the documents. An expensive and dangerous mistake.

"Simply writing is difficult"

The authors' opinion: Many quality experts can only write about quality management in the language of standards and technical models. Software such as the free AI tool "Plain" from Wortliga could help here, according to TÜV Rheinland.

"Writing simply is difficult," says Gidon Wagner from Wortliga. "The challenge lies in preparing complex content in such a way that everyone understands it - without losing precision. The AI tool "Plain" helps experts with this. TÜV Rheinland's assessment illustrates the contribution AI can make to communication."

Clear communication saves time and increases satisfaction

Comprehensible communication also helps organizations economically: employees make fewer mistakes; companies can increase employee satisfaction and productivity - as studies show. Public authorities also reduce the number of queries and misunderstandings and thus relieve their employees. Above all, this saves costs and reduces bureaucracy.

AI translation

Clear language provides vital clarity, and not just for safety-critical documents. Doctors can use AI translations to help patients better understand package leaflets, for example. The specialist portal for doctors "Medscape" therefore advises doctors: "Incomprehensible package leaflets or guidelines? Recommend the artificial intelligence "Plain" to patients". The AOK-Bundesverband also recommends Wortliga for patients' health literacy.

Wortliga's AI differs from chatbots such as ChatGPT. Such tools deliver very different results because they are generic. "Plain" specializes in translations into understandable language. This means that no details are lost. The tool follows the ISO 24495-1 standard for "plain language".

Source: www.wortliga.de

In most companies, IT experts rather than citizen developers use low-code platforms

Webcon, provider of the low-code platform Webcon BPS for Business Process Automation (BPA), has published the results of a new study on the status of low-code application development in Germany, Austria and Switzerland. In collaboration with the market research institute Opinion Matters, Webcon surveyed 261 IT decision-makers from B2B and B2C companies who are involved in application deployment in their organizations.

84 percent of all respondents assume that low-code platforms will become even more important for application development in the coming years. (Image: www.depositphotos.com)

The study shows that 36% of companies currently deliver four to ten IT applications per year, while a further 36% deliver eleven to 20 new applications. However, this is not nearly enough to meet the demand for useful IT applications - 77% see a need for improvement in the company's own IT. 

Low code has long passed the trial phase in most companies: 63% of companies have two or three low-code platforms in use - the applications developed on these platforms are critical to business success for 87% of those surveyed.

The most frequently cited advantages of low-code application development are

  • More favorable development and delivery: 82 percent
  • Faster delivery: 89 percent
  • Applications are better tailored to business needs: 82 percent
  • Greater flexibility of use, easier to change: 83 percent

"Many companies are faced with the challenge that user requirements are not clearly defined and are constantly changing over time," says Philipp Erdkönig, Consultant at Webcon. "The study shows very clearly how important the adaptability of applications is: 49 percent of the companies surveyed state that new applications no longer meet all user requirements after just one year. With low-code platforms, these fulfill the requirement of flexibility much better than standard software (80.5 percent) but also than individually programmed applications (82.2 percent)."

Philipp Erdkönig - Consultant at Webcon. (Image: www.webcon.com)

84 percent of all respondents therefore assume that low-code platforms will become even more important for application development in the coming years - 42 percent even say that their importance will increase significantly.

"The study results confirm the suspicion that low code and citizen development only form an inseparable pair in Power Point presentations and marketing documents," continues Erdkönig. "In practice, IT is still indispensable for the development and provision of applications: The clear majority (78.7 percent) state that low-code development is in the hands of professional developer:s from their own IT department. However, there is a clear trend towards greater involvement of specialist departments in the development process. Especially in companies with up to 1000 employees, cooperation between business and IT is the most frequently cited strategy (57.7 percent) for the provision of new IT applications. This corresponds exactly to the method of so-called citizen-assisted development, which is a further development of citizen development."

Source: www.webcon.com

European insurers plan to invest more in digitalization

Two-thirds of European insurance industry executives plan to accelerate their digitalization programs to improve both customer satisfaction and operational efficiency amid the ongoing threat of recession. This is according to a new market study published by market research and consulting firm Information Services Group (ISG).

ISG study: Two thirds of respondents plan to increase their investments in digital technologies over the next two years. (Image: www.pixabay.com)

A total of 270 business decision-makers and IT managers from the European insurance industry were surveyed for the study in the fourth quarter of 2023. It revealed that two thirds of respondents plan to increase their investments in digital technologies over the next two years. The areas of payment channels (68%), cyber security (63%), augmented/virtual reality (63%) and artificial intelligence (59%) top the list of the most important areas of investment.

From the perspective of those surveyed, the biggest business challenges at present are acquiring new customers (85%) and retaining existing customers (74%). Increased investment in digital offerings and personalized services should help to maintain and gradually expand the current customer base.

"European insurers are focusing on digital-first approaches as they adopt next-generation technologies that drive core business profitability and improve companies' market position," explains Steve Hall, Chief AI Officer & President ISG EMEA. "Process and decision automation and data management will help create technology-enabled organizations where people are at the center and rapidly evolving digital technologies are used to redesign work, reduce costs and improve services. AI will undoubtedly be another driver of this development."

AI, cyber and IT security

According to the survey, the field of artificial intelligence (AI) is currently growing particularly strongly. 13 percent of respondents state that their annual budget for AI already exceeds one million euros. Six out of ten experts expect a further increase in investment in the current year. In addition to established AI methods such as natural language processing and machine learning, large language models are also increasingly being used. AI development is still in its infancy for many respondents: half of the companies (50 percent) are experimenting with prototypes, while only 6 percent are developing company-wide AI solutions. The comparable figure for augmented reality (AR) and virtual reality (VR) technologies is 18%. The high popularity is mainly due to the business customer sector. Here, AR/VR tools open up new opportunities to minimize damage through preventive maintenance.

91 percent of those surveyed see increasing efficiency in the area of customer data management as an important investment priority. ISG knows from consulting projects that only around a fifth of existing customer data is used effectively. Breaking down data silos therefore remains a major challenge.

Another area of focus is cyber security, as companies increasingly rely on digital infrastructures where assets become vulnerable to business disruption and cyber attacks. Against this backdrop, investment in digital risk management continues to grow. Cyber and AI are the main beneficiaries of this. The aim is to build "customer trust" as a key differentiator and to meet increasing regulatory requirements. 63% of respondents assume that budgets for cyber security will increase in 2024 and 2025 in order to meet the growing risks and regulatory requirements.

"The focus of insurers' investments is on AI, legacy modernization and IT security. Building strategic partnerships can improve access to digital capabilities, process knowledge and specialized talent, while expanding market access and sharing development risk," adds Hall. "The proportion of companies that see the consolidation of their service provider portfolio as a top IT priority will increase significantly from 59% in 2022 to an impressive 93% in 2023."

Given the evolving dynamics of the labor market and the need to attract and retain IT talent, a balance between insourcing and outsourcing is critical: the proportion of respondents who want to invest in insourcing (78 percent) is almost as high as the proportion of those who want to invest in outsourcing (77 percent). 68 percent of decision-makers see the improvement of talent management as an urgent business necessity.

"While technology companies and insurtech start-ups are becoming attractive employers for young, tech-savvy professionals, established insurers are facing the challenge of attracting and retaining the best talent," concludes Hall. "High-quality talent management is therefore becoming a decisive factor in meeting the transformative technological requirements."

Source: www.isg-one.com

Accident figures for Suva insured persons remain stable

As Switzerland's largest accident insurer, Suva insures around half of all employees and a fifth of all companies against occupational and leisure accidents and occupational illnesses. Last year, over 490,000 accidents and occupational illnesses were reported to Suva. The difference compared to the previous year is small. In general, more accidents occur during leisure time than at work.

Suva: In 2023, 61 percent of reported accidents occurred during leisure time and 39 percent at work. (Image: www.suva.ch)

In 2023, the insured companies reported around 494,000 accidents and occupational illnesses to Suva. The difference compared to the previous year's figures is small, with an overall increase of 0.3%. Occupational accidents and illnesses rose by 0.8 percent to around 186,000 cases, while leisure accidents increased by 0.7 percent to around 292,000 cases. The number of accidents involving persons registered as unemployed and persons undergoing IV measures fell by 10.6%. Among other things, this can be attributed to the good labor market situation with unemployment figures continuing to fall. 

Cases registered with Suva under compulsory accident insurance:

Total accidents and occupational diseases

2023

Difference from previous year

2022

of which occupational accidents and diseases

493 636

+ 0,3 %

491 945

thereof non-occupational accidents

186 398

+ 0,8 %

276 886

of which accidents and occupational illnesses in the
Accident insurance for the unemployed and
of persons in IV measures

15 230

– 10,6 %

17 030

"The fact that the number of accidents at work and during leisure time has remained stable compared to the previous year is encouraging," says Alois Fässler, statistician at Suva. "We suspect that the accident risk, i.e. the number of accidents per 1000 full-time employees, has decreased slightly. This is because, according to the Federal Statistical Office (FSO), the number of people in employment rose more sharply than the number of accidents in the first three quarters of 2023. We will be able to provide more precise information in spring when the final figures are available."

More leisure accidents than occupational accidents

While occupational accidents were clearly in the foreground in earlier years, Suva registered more leisure accidents than occupational accidents for the first time in 1991. Since then, leisure accidents have predominated. In 2023, 61% of reported accidents occurred during leisure time and 39% at work. "Nowadays, people invest more time in their active leisure time, which is why the number of accidents in the leisure sector is higher than in the world of work," says Alois Fässler. "Other reasons include ongoing prevention work in the areas of occupational safety and health protection as well as the decline in workplaces with a high accident risk, for example due to increasingly automated processes."

Detailed information on Suva's 2023 financial year will be presented on June 14, 2024 in Lucerne as part of its annual media conference.

Source: www.suva.ch