Insurance in the United Kingdom, 2015: Business and IT Priorities
The UK insurance market remains one of the most competitive globally, attracting interest from around the world with a high number of participants and a varied distribution landscape. In 2015, Celent surveyed nine UK insurers to discuss how this year’s business priorities were shaping their IT portfolios heading into 2016.
In the new report Insurance in the United Kingdom, 2015: Business and IT Priorities, Celent explores how insurer business priorities are shaping IT investment portfolios. Areas of focus within the report include:
- Business priorities.
- IT investment and initiatives in digital transformation and legacy modernisation.
- IT budgets and spending.
Interviews were held across insurers from both the non-life and life sectors, and backed up with a quantitative survey.
Since 2013, Celent has observed the industry moving from an agenda of cost control and compliance towards one of growth through distribution and service innovation. Whereas "digital" was once a question mark for the industry waiting to be answered, initiatives focused on automation, analytics, and new propositions are now resulting in new investment focused on modernising core insurance components, streamlining services, and making more effective use of data. Efficient execution of these initiatives against a backdrop of increased demand for change remains a top priority.
“Investments in digital that are capable of being delivered in installments that produce rapid results in core business performance, such as underwriting, operational efficiency, and distribution capability, are likely to continue to dominate,” says Jamie Macgregor, Senior Vice President within Celent’s Insurance practice and author of the report. “Even though there are signs of positive growth in the UK economy, against a backdrop of continued global economic fragility, low interest rates, and rising consumer expectations of digital servicing, UK insurers need to continue to invest in technology wisely.”
Looking over a two-year horizon, Celent believes that UK insurers will continue to invest cautiously.
Furthermore, Celent expects this movement to accelerate as insurers change the shape of IT organizations to take advantage of new outsourced and cloud-based services, and the corresponding inevitable shift towards greater levels of operating expenditure.
This 30-page report contains 2 tables and 14 figures.