Regulatory pressures top the list of concerns among insurance executives, concludes a survey by advisory firm KPMG L.L.P.

The 2013 KPMG Insurance Industry Outlook surveyed 101 industry executives and found that 60% of respondents considered regulatory and legislative requirements the most significant barrier for growth in the coming year, up from 47% last year.

Conversely, concern about pricing pressure, cited as the second-most significant barrier to growth in 2013 at 46%, ebbed slightly from the previous year.

“Insurers have experienced a significant shift in the marketplace; in just two years, industry executives have abruptly diverted their attention from pricing concerns to regulatory matters,” Laura Hay, national leader of KPMG's insurance practice, said Wednesday in a statement. “This turnabout is even more significant when you consider that economic conditions have only slightly improved during this time period, so the combination of these two factors creates an exceptionally challenging market.”

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Asked which proposed regulations most affected their businesses, 51% of respondents picked health care reform, followed by increased federal oversight at 44% and convergence of insurance contract standards at 24%.

“Regulators continue to ask tough questions, and regulatory intrusion is set to increase in the coming years,” David Sherwood, head of KPMG's U.S. insurance regulatory group, said in the statement. “More than ever, regulations and agendas established internationally (and) in Washington, as well as in local jurisdictions, have as much influence on the industry as market conditions and consumer confidence.”

The survey also found respondents look to increase spending on technology to improve their operational performance. Asked which areas on which they expected their company to increase spending in the next year, information technology was first at 51%, followed by new products or services at 38% and geographic expansion at 34%.

When asked which area of technology was their highest investment priority, IT infrastructure was first at 43%, while data and analytics came in second at 33%.

Ms. Hay said the growing investment in data and analytics indicates that insurers view the technology as a source of competitive advantage.

“Harnessing the vast amounts of data that reside in a company can generate insights that will allow insurers to identify new market opportunities and operating models, improve risk management strategies, engage current and acquire new customers, and gain competitive intelligence,” she said in the statement. “Effectively leveraging data can support growth and profitability goals, and those that embrace and implement more sophisticated analytics stand to rise above their competitors.”