IT Spending In Insurance
Making Sense of the Future Insurers' Technology Investments
Following the COVID-19 outbreak earlier this year that is still impacting economies globally, pressure on IT budgets remains, with insurers' CIOs being asked to keep run costs flat or to reduce them. This trend requires the IT function to be constantly focused on technology renewal in order to capture the productivity and cost benefits of new technologies.
We anticipate continued focus on efficiency in software delivery, leading to greater cloud adoption levels, greater use of open source, and greater use of agile techniques. The days of multi-year multi-million transformation projects, although still in existence today, are somewhat numbered as insurers look for faster delivery timescales at lower price points.
New technology investment will continue to be directed at digitising channels to grow sales and deliver an engaging customer experience, rationalising the core estate using new techniques to advance productivity, and deploying data / AI techniques to improve the underwriting result. AI will increasingly become a core part of a typical project and no longer an exercise in “innovation.”
This report analyses regional IT spending patterns of insurance companies and presents a high-level view of the insurance global market. It examines estimates for IT budgets based on premium growth as well as the impact of technology on strategic and business trends.