Life Insurance CIO Pressures and Priorities 2017: North America Edition

by Tom Scales,  Donald Light, January 27, 2017
Other
North America

Abstract

CIOs in all segments identify the business goal of growth and retention as a top priority. Two initiative types lead the CIOs’ rankings in all three segments: legacy modernization and operational excellence.

Celent has released a new report titled Life Insurance CIO Pressures and Priorities 2017: North America Edition. The report was written by Tom Scales and Donald Light, Research Directors in Celent’s Insurance practice.

The survey shows that CIOs in all segments identify the business goal of growth and retention as a top priority. Two initiative types lead the CIOs’ rankings in all three segments: legacy modernization and operational excellence.

Average increases of 5% to 7% for many insurers were balanced by no increases or even decreases for others.

“Life insurers’ focus on growth and retention is consistent with Celent's conversations around the industry,” said Scales. “Technology spending in life insurers has historically focused on building the business.”

“We see a strong focus on innovation, which is encouraging,” said Light. “More insurers are investing in insurtech, either through projects or their venture capital arm as well.”

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

 

Survey Methodology

1

 

Key Research Questions

1

Introduction

2

Survey Results

3

 

Influence of Business Goals on IT Plans

3

 

Major Initiative Status

4

 

Plans to Replace of Maintain Specific Applications

5

 

IT Budgets as a Percentage of DPW

7

 

Year-over-Year Percentage Changes in IT Budgets

8

 

Digital Initiatives’ Projected Level of IT Activity

8

 

How Insurers Are Facilitating Innovation

9

 

How Insurers Are Engaging with Insurtech

10

Year-over-Year Comparisons

12

Conclusions

15

Leveraging Celent’s Expertise

16

 

Support for Financial Institutions

16

 

Support for Vendors

16

Related Celent Research

17

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