2012 US Insurance CIO Survey: Pressures, Priorities—and Innovation

by Craig Weber,  Donald Light, March 16, 2012
North America

Abstract

What is driving insurance CIOs’ priorities for 2012? How are they responding? What role will innovation play? This report provides the answers.

A new report, 2012 US Insurance CIO Survey: Pressures, Priorities—and Innovation, provides insights from North American CIOs regarding their companies’ outlooks for 2012, their projects, and the resources they will have. The report also examines how CIOs are using innovation to address these issues—by profiling seven innovative initiatives.

“Some of the technology themes are familiar: replacement of core policy administration and claims systems. Others are new: the emergence of new business/underwriting as an area with new project significant spending,” says Donald Light, Senior Analyst with Celent’s Insurance group and author of the report. “While not accounting for a large portion of current spending, some use of several emerging technologies is found in half or more or insurers surveyed, especially social media and mobile apps.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Erica Ferguson
eferguson@celent.com
Tel.: +1 617 262 8225

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

3

Introduction

4

Key Findings from the CIO Survey

5

Looking at 2012

6

Insurers’ Need to Innovate and CIOs’ Ability to Innovate

10

CIOs’ Toughest Challenges

13

IT Budgets

14

Sourcing Strategies for Core Systems

16

Innovation: Getting There in Four Steps

18

Case Study; Replatforming at XYZ Insurance

20

Case Study: Core System Replacement at Indiana Farm Bureau Insurance

22

Case Study: The Multiuse Initiative at Personal Insurance Company

24

Case Study: The New Era Commercial Initiative at Large Insurance Company

26

Case Study: Assist A User at Hastings Mutual

28

Case Study: Agile Development at Specialty Insurance

30

Case Study: New Business STP and ABC Insurance

32

Conclusions

25

Leveraging Celent’s Expertise

35

Related Celent Research

36

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