Insurance in Europe: 2017 Business and IT Priorities

by Jamie Macgregor,  Nicolas Michellod, June 2, 2017
Industry Trends
EMEA

Abstract

Despite the tough economic environment, European insurers continue to drive their search for profitable growth, largely through a combination of distribution initiatives and niche client hunting.

Celent has released a new report titled Insurance in Europe: 2017 Business and IT Priorities. The report was written by Jamie Macgregor, a Senior Vice President, and Nicolas Michellod, a Senior Analyst, both with Celent’s Insurance practice.

The economic environment remains tough for insurers in Europe. Despite this, European insurers continue to drive their search for profitable growth, largely through a combination of distribution initiatives and niche client hunting. Many insurers have accepted the new environment and are changing their strategies to grow within it.

Innovation has become the top business priority influencing European IT investment plans in 2017. About two-thirds of European insurers consider easing new business generation (via agents, brokers, and prospects) as their top priority (rated very high or high) within their digital programs. Approximately 85% of European insurers are monitoring insurtech activity. Generally, it’s only the larger firms which actively invest in innovation vehicles, such as incubators, accelerators, or venture capital.

“Innovation and insurtech appear to have captured the imagination of many insurers across the market, with approximately 85% within our sample actively monitoring the market,” commented Macgregor.

“Despite interest in insurtech, investment in the core business remains a priority with opportunities to be had in digital distribution, automation, and improved risk insight as a consequence of better analytics,” Michellod added.

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

 

Key Research Questions

1

About the Survey

2

 

Inputs to this Report

2

Business Outlook and IT Spending

4

 

Refocusing on Growth

4

 

Business Goals Influencing IT Plans

5

 

IT Budgets

6

 

IT Spending

7

Legacy and Ecosystem Transformation

9

 

Investment Status

9

 

Application Portfolio Plans

10

Digital Transformation

12

 

Investment Status

12

 

Digital Initiatives

12

 

Progress in Artificial Intelligence

13

Innovation

15

 

Investment Status

15

 

Innovation Vehicles

16

Final Thoughts

18

 

Trends and Predictions

18

Leveraging Celent’s Expertise

20

 

Support for Financial Institutions

20

 

Support for Vendors

20

Related Celent Research

21

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