Insurance in Latin America 2014: The CIO Perspective

by Juan Mazzini, May 6, 2014
Latin America

Abstract

This report reviews current business trends facing the insurance market in Latin America and how they are driving IT investment and strategies. Growth is the dominant theme. Growth is expected in the economy, in insurance, in IT budgets, and in IT staff. Insurers are responding to business drivers with investments in the main areas: Digital, Analytics, Core and Ecosystem Transformation, and Innovation.

Every year, Celent surveys insurance CIOs, asking them about their pressures, priorities, and practices for the coming year. In the report Insurance in Latin America 2014: The CIO Perspective, Celent provides the most important results from this year’s survey.

The objective of this report is to review current business trends facing the Latin American market and how they are driving IT investment and strategies.

Latin America is a large, diverse marketplace containing economies with significant different sizes and levels of maturity. Due to this diversity some trends discussed in this report may not reflect the situation in a specific country, but Celent is confident that the report reflects the major trends in the region.

“The existing and emerging technologies that will enable digital and nondigital strategies to provide the customer experience required by a sophisticated consumer are already here and are improving day after day,” says Juan Mazzini, Senior Analyst with Celent’s Insurance Group and author of the report. “Mastering the pieces will require a dose of ruthless execution and systemic innovation companywide. It remains to be seen if insurers are up to the challenge.”

This report examines business trends facing the Latin American market and how they are driving IT investment and strategies. Celent’s goal in this report is to provide an outlook on insurance and IT for the region, along with the IT initiatives around the main themes of coverage:

  • Digitalization.
  • Analytics.
  • Legacy and ecosystem transformation.
  • Innovation and emerging technologies.

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

 

Methodology

3

Overview

4

 

Economic and Insurance Outlook

6

Business Themes Behind IT Investments

9

IT Initiatives

14

 

Digital Transformation

15

 

Analytics

17

 

Legacy and Ecosystem Transformation

18

 

Innovation and Emerging Technologies

21

IT Budgets and Spending

35

 

IT Budget

35

 

IT Spending

36

 

IT Staffing

37

Final Thoughts

40

Leveraging Celent’s Expertise

42

 

Support for Financial Institutions

42

 

Support for Vendors

42

Related Celent Research

43

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