Insurance CIO/CTO Pressures, Priorities, and Plans in 2008: US Survey Results

by Craig Weber,  Donald Light, January 9, 2008

Abstract

San Francisco, CA, USA January 9, 2008

Celent takes its fifth annual look at what US insurance company CIOs and CTOs are planning for the new year.

A new report, , is designed to provide information about behaviors, initiatives, challenges, and priorities for 2008 at US insurers. This report is intended to benefit two audiences: it is a valuable benchmarking and strategic planning tool for insurance CIO/CTOs and their staffs; and a source of critical market information for service and solution providers.

A year ago, Celent concluded that the outlook for 2007 was one of continuity rather than rapid change. In some ways, 2008 may be more of a transitional year. Premium growth for the industry appears to be slowing, and IT staffing levels look like they will follow suit. The credit crisis and recession fears facing the general US economy in late 2007 have added a somber note. However, Celent expects 2008 to be a year of continued investment in new applications and solutions. Growth continues to be an imperative--but growth in a soft market can mean growing relative to competitors. IT spending is focused on getting new business in the door,

"At the top of the list of the most important challenges and opportunities facing insurance CIOs and CTOs in 2008 is maintaining growth in a softer and more uncertain market by investing in new business and underwriting solutions and by upgrading other core systems," says Donald Light, senior analyst with Celent and coauthor of the report.

"Right behind is controlling expenses by continuing to migrate to a more modern infrastructure such as SOA," adds Craig Weber, managing director of Celent's insurance group and coauthor of the report.

The 48-page report contains 36 figures and three tables. A table of contents is available online.

Members of Celent's Life/Health Insurance and Property/Casualty Insurance research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.  

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 subsidiary 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

San Francisco, CA, USA January 9, 2008

Executive Summary 03
Introduction 04
Key Findings 06
About the Survey 07
Business Pressures and IT Priorities 09
Budgets  14
Staffing 16
New Project Spending 20
Outsourcing 28
Platforms and Technologies 31
SOA and Web Services 39
View of Vendor Construction 43
Web 2.0 45
Conclusions 47

 

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