Life/Health Insurance CIO Pressures and Practices 2015: North American Edition

by Donald Light, January 16, 2015
Industry Trends
North America

Abstract

What are life/health insurer CIOs planning for 2015? What business priorities are they reacting to, what initiatives will they be funding, and how are they investing in digital and innovation? This report provides the answers.

This report is based on a survey of CIOs and covers the following topics:

  • Business goals’ influence on IT plans.
  • The status of major IT initiatives.
  • Replacement or maintenance plans for specific applications.
  • IT budgets: IT budget as a percentage of DPW.
  • IT budgets: Change in IT budget 2015 vs. 2014.
  • IT budgets: R&D as a percentage of total IT budget.
  • Digital strategy planned activity.
  • Incremental vs. disruptive innovation.

“CIOs in all segments identify the business goal of growth and retention as the most important influence on their IT plans,” says Donald Light, research director with Celent’s Insurance practice and author of the report. “Process optimization is a strong influence in all segments. However, CIOs in different segments vary considerably in their evaluation of the other business goals. For example, reaching diversification of activities, products, and services is quite important to large insurers, but not to midsize and small ones. Cost reduction is close to top of mind for midsize and small insurers.”

This 24-page report has one table and 16 charts.

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

 

Survey Methodology

2

Business Goals’ Influence on IT Plans

3

Major Initiative Status

5

Plans to Replace or Maintain Specific Applications

7

2015 IT Budgets

11

 

IT Budgets as a Percentage of DPW

11

 

Year over Year Percentage Changes in IT Budgets

12

 

Percentage of IT Budget Allocated to R&D

13

Digital Initiatives’ Projected Level of Activity

14

Innovation: Disruptive Vs. Incremental

16

Conclusion

17

Leveraging Celent’s Expertise

18

 

Support for Financial Institutions

18

 

Support for Vendors

18

Related Celent Research

19

Sign in to download reports and access personalized information