IT Trends in Large and Medium-Size Insurers: The Latin American View
The effects of IT pressures, priorities, and practices can differ by size of insurer. Even being in the same marketplace and being subject to the same regulations as small insurers, large and medium insurers have to adapt strategies and tactics to accommodate their capacities and culture.
With this in mind, Celent reviewed the information submitted by CIOs from different large and medium-size insurers in the Latin American region to take a cut at this distinctive set of data.
Faster time to market for new products, streamlined and efficient processes, enhanced configurability, flexibility, and the reduction of long-term maintenance costs are some of the goals for insurers upgrading and replacing their core systems. Most firms are replacing their legacy core systems with modern technology, while others are extending the functionality of policy administration systems and using service-oriented architecture (SOA) to achieve efficiency and flexibility.
“Large and medium-size insurers are investing or considering investments in three main areas: digital transformation, IT-enabled innovation, and core system replacement or modernization,” says Luis Chipana, an analyst with Celent’s Insurance practice and author of the report. “For insurers, vendors, or stakeholders in the industry, the IT trends presented in this report will provide a benchmark and of what is going on and an indication where the industry is headed.”