2022 Business and IT Priorities in Insurance
7 February 2022
Are you ready to shift your IT gears to "thrive"?
Like last year, 2022 will be another disruptive year for the insurance industry, with the pandemic forcing insurers to continue their focus on accelerating digital roadmaps.
The pandemic and the subsequent battle against COVID variants is truly the "new normal" and should be the baseline for technology investment planning. The 2022 IT lifecycle should be a series of crisis responses, recovery expectations, and steady steps toward thriving.
As insurers move forward, CIOs will continue to develop and revise their IT plans with an eye toward virtualization. Many insurers have implemented or are planning to implement key elements that will support a virtual business and IT environment over time, including collaboration, customer and agent communications, and digital insurance service delivery.
Every year, we survey insurance CIOs around the world, including Asia-Pacific, Europe, the Middle East and Africa, Latin America, and North America. We conducted our most recent global CIO survey between December 2021 and January 2022. More than 50 insurance CIOs, CTOs, or IT architects contributed to the survey, and we think they represent a good mix of the market in terms of company size.
Although the survey was reasonably short, it covered a broad range of 10 topics, including:
Business and technology priorities: Global insurers have identified business goals such as securing growth opportunities and optimizing processes as priorities for IT investments.
IT budget and allocation: The largest portion of CIOs' IT budgets covers maintaining current systems. Internal and external budget allocations are almost equal.
IT investment priorities: By application portfolio, new policy and underwriting systems continue to drive investment.Policy administration system enhancements and replacements and front end components to accelerate digital processes are also high on the CIO list.
Cloud: Cloud is already being used extensively by global insurers, including for mission-critical systems, and usage is expected to expand in 2022. Cloud-native systems are desired.
Innovation: The importance of innovation is emphasized by 90% of the respondents. The methodologies are diversifying, including the use of insurtech.
Cybersecurity: Cyber attacks have been experienced by many insurers, but all insurers, regardless of experience, are increasing their investments in cybersecurity.