India will see continued explosive growth in the
insurance market, with IT spending growing to over $9 billion by 2012.
Insurers must now invest in people, processes, and technology in order to
remain competitive.
In a new report, Insurance in India: Market and
IT Overview, Celent discusses key drivers in the insurance market and
how insurers should be positioning their IT to take on these challenges.
The country has experienced unprecedented economic rates of growth in the
past decade, and the insurance industry has seen a 25% increase in premium
income over 2005.
For the insurer, the challenge is all about scale
and skills. The company board must be clear about growth plans and overall
business strategy if IT is to be supportive in the future. With these
plans in mind, CIOs will need to make significant investments in people,
processes, and technology. IT providers will have to come to terms with
the issue of scale quickly to be at the forefront of what could become a
very competitive marketplace for IT services.
Celent estimates IT spending in 2008 will top US$3
billion. The largest proportion of IT spending is within the life
insurance sector, reflecting both the enormous size of this sector and
higher overall IT spending. Growth in IT spending will match the increase
in premium growth expected in the coming years. Celent estimates IT
spending will grow to over US$9 billion by 2012.
“India is emerging as one of the most important
players in the world economy,” notes co-author and insurance senior
analyst Catherine Stagg-Macey.
“This is a nation only just beginning to tap its
enormous potential,” adds co-author Ashley
Evans, “and India stands poised to become a giant in the world
economy, perhaps even a serious rival to the US and China.”
This report looks in more detail at the size and
structure of the Indian insurance market and discusses salient IT trends.
The 25 page report contains 7 figures and 10 tables.
A table of contents is available
online.
