IT Spending in Insurance: A Global Perspective, 2017

Industry Trends
Global

Abstract

This report analyzes regional IT spending patterns of insurance companies and presents a high-level view of the insurance global market. It examines estimates for IT budgets based on premium growth as well as the impact of technology on strategic and business trends.

Celent has released a new report titled IT Spending in Insurance: A Global Perspective, 2017. The report was written by Jamie Macgregor, Juan Mazzini, Karen Monks, and KyongSun Kong, analysts with Celent’s Insurance practice.

Using IT spending as a percentage of premium, Celent estimates that global IT spending by insurance companies will reach US$184.8 billion by the end of 2017. Three overarching trends — digitalization, data analytics, and legacy and ecosystem transformation — still dominate investment. Different geographical markets are at different states of maturity. Developing markets remain aggressive in their focus on new platform acquisition and technology in support of sales distribution. More mature markets are characterized by agendas of digital transformation and modernization.

"In a few markets globally, we have seen a slight reduction in IT spending this year. Generally, the more mature markets remain under pressure to demonstrate value through efficiency," commented Senior Vice President Jamie Macgregor.

"Digitisation and, increasingly, analytics are a dominant piece of the technology investment agenda, with a clear focus on the front end of the business in sales and distribution," he 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

Introduction

4

 

Key Research Questions

4

 

Global GPD Estimates

4

 

Global Insurance Sales

5

 

Definition of IT Spending

5

The Insurance Industry Global View

7

 

Top Technology Trends

8

North America

12

 

Snapshot

12

 

Top Trends

14

Europe

19

 

Snapshot

19

 

Top Trends

21

Asia-Pacific

24

 

Snapshot

24

 

Top Trends

26

Latin America

30

 

Snapshot

30

 

Top Trends

32

Rest of the World

38

Conclusion

39

Leveraging Celent’s Expertise

40

 

Support for Financial Institutions

40

 

Support for Vendors

40

Related Celent Research

41

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