2013 North America Insurance CIO Survey: Pressures, Priorities—and Innovation

by Chuck Johnston,  Donald Light, April 25, 2013
Industry Trends
North America

Abstract

Each year, Celent surveys insurance company CIOs, asking them about their pressures, priorities, and practices for the coming year. This year’s report covers two topics: selected results from the 2013 CIO survey, and how CIOs enable innovation in their companies.

In the report, 2013 North America Insurance CIO Survey: Pressures, Priorities—and Innovation, Celent describes the range of IT budgets as a percentage of premium, year over year changes in IT budgets, and three strategies for core system replacements. The report also describes how CIOs are dealing with the four levels of Celent’s Innovation model: perception; analysis; process, decisions, and experience; and results.

“Insurers who view innovation as integral to their business are focused on creating the right organization for identifying and deploying innovative projects,” says Chuck Johnston, Research Director with Celent’s Insurance Group and coauthor of the report. “In many cases, these are IT-led initiatives, since technology is seen as an innovation enabler.”

“Four categories of initiatives consume just over half of total new project resources: policy administration; new business / underwriting / rating; distribution and external portals; and claims,” adds Donald Light, Director, Americas Property/Casualty with Celent’s Insurance Group and coauthor of the report.

This 20-page report has six figures.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

2

 

Survey Methodology

2

IT Budgets 2013

3

Major IT Investments

6

Finding Innovation in a Sea of Technology

8

Enabling Innovation

9

 

Perception

9

 

Analysis

10

 

Process

11

 

Results

12

Conclusions

14

Leveraging Celent’s Expertise

15

 

Support for Financial Institutions

15

 

Support for Vendors

15

Related Celent Research

16

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