News

10:45 AM
Connect Directly
Twitter
LinkedIn
Google+
RSS
E-Mail
50%
50%

One-Third Of Insurers Plan IT-Enabled Transformation: Study

Here are the priority areas for insurance IT investments in the P&C and L&A segments, according to research from SMA.

A recent report from SMA found significant growth in insurance IT budgets for 2014 through 2017. The study reveals business drivers for IT spending, how technology budgets are changing, and top priorities for the next four years.

In 4Q13, SMA surveyed 100 insurance executives in the P&C and L&A segments. Respondents indicated optimism towards the improving market and plans to increase their IT investments. Thirty-two percent consider their company to be in "transformation mode," largely enabled by IT programs.

[ More on IT: Why an IT Service Management Approach is Crucial. ]

Technology spending proved to be considered critical to business' growth and change. Almost two-thirds of insurers plan to increase 2014 IT budgets by an average of 3%, according to SMA. 11% of respondents said they plan 2014 increases of over 10%. All indicate plans for continuous budget increases through 2017.

Insurers surveyed by SMA plan to use larger budgets for major projects that will improve customer experience, modernize core systems, and gain further analytical insight. P&C insurers reportedly intend to focus more on analytics and mobile. L&A companies plan to heavily invest in upgrading business and underwriting capabilities, according to SMA.

The report indicates that insurers' IT spending is becoming increasingly strategic. "Forward thinking insurers are beginning to define the destination – what it will look like to be a next generation insurer 5 or 10 years from now," the report states. "This enables insurers to invest in the context of a strategic framework, focusing on key imperatives that will make the biggest impact in 2014."

Kelly Sheridan is an associate editor for Insurance & Technology. Prior to joining InformationWeek Financial Services, she was a staff writer for InformationWeek and InformationWeek Education. Kelly has also written for trade publication Promo Marketing and a number of ... View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Nathan Golia
50%
50%
Nathan Golia,
User Rank: Author
1/24/2014 | 8:47:07 PM
re: One-Third Of Insurers Plan IT-Enabled Transformation: Study
L&A investing in underwriting Gă÷ my bet is this is about finding ways to underwrite a risk without subjecting them to a full physical (which many consumers cite as the reason they don't buy life insurance coverage).
Register for Insurance & Technology Newsletters
White Papers
Current Issue
Slideshows
Video