Insurance in the United Kingdom 2012: The CIO Perspective

by Catherine Stagg-Macey, March 13, 2012
Industry Trends
EMEA

Abstract

UK insurers’ IT investment in 2012 will focus on core systems replacement and improving e-trading capabilities.

The financial crisis and resulting economic upheaval have made for uncomfortable trading conditions in the last decade. But moving into 2012, the theme of growth becomes more common across both life and general insurance sectors in the United Kingdom.

In a new report, Insurance in the United Kingdom 2012: The CIO Perspective, Celent looks at the technology plans and priorities for British insurers. This year sees a sector looking to grow, and also planning to address operational efficiencies.

“To support agendas of both growth and improved operational efficiency, insurers continue to make legacy systems replacement a priority,” says Catherine Stagg-Macey, Senior Vice President with Celent’s Insurance group and author of the report. “The UK market shows real momentum here, with half of the top 20 insurers having made their decision to replace. The next three to five years will see considerable IT investment in executing these decisions.”

This report reviews in detail the current business trends facing the market for 2012, and how this is impacting IT investment. Key business themes are identified, and the broad IT investment plans and priorities for UK insurers are reviewed. Details of budgets and IT spending, areas of IT investment, and interest in new and emerging technologies are also addressed in this report.

Trends and data discussed this report reflect Celent’s experience of the market based on ongoing discussions with the industry and, specifically, deep interviews with 19 CIOs at the end of 2011 and beginning of 2012.

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)
Tylor Tourville
ttourville@celent.com
Tel.: +1 617 424 3284

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

Insurance Market Overview for the United Kingdom

6

Business Themes

11

IT Initiatives

15

IT Budgets and Spending

19

Innovation and Emerging Technology Adoption

22

Final Thoughts

27

Leveraging Celent’s Expertise

28

Related Celent Research

29

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