Insurance in the United Kingdom 2011: The CIO Perspective
Growth and compliance with new regulations dominate the business agenda for insurers in the United Kingdom.
The recession that hit the world was not only strong but also very sudden. In less than a year, the UK annual GDP growth rate went down from nearly 2.7% to –4.9%. What followed were brutal trading conditions for UK PLC, and insurers had to adapt accordingly. The dark shadows of the recession have faded, and insurers are optimistic and focusing on growth in both sectors in 2011.
In a new report, Insurance in the United Kingdom 2011: The CIO Perspective, Celent looks the technology plans and priorities for UK insurers. This year sees a renewed and invigorated sector, with a goal of growing the business.
“If there is a single lesson for insurers from the recession, it’s the importance of an agile and flexible IT operation,” says Catherine Stagg-Macey, Senior Vice President with Celent’s Insurance group and author of the report. “This has to be in place to support a rapid response to unpredictable operating conditions. It’s not surprising to see the continued planned investment around core systems, specifically underwriting and product configuration.”
This report reviews in detail the current business trends facing the market for 2011, and how they are impacting IT investment. Key business themes are identified, and the broad IT investment plans and priorities for UK insurers are discussed. Details of budgets and IT spending, use of outsourcing, and interest in new and emerging technologies are also addressed in this report.
Trends and data discussed in this report reflect Celent’s experience of the market based on ongoing discussions with the industry and, specifically, deep interviews with 18 CIOs at the end of 2010 and beginning of 2011.