Life/Health Insurance CIO Pressures and Priorities 2016: North America Edition

by Tom Scales,  Donald Light, January 22, 2016
Industry Trends
North America

Abstract

At the end of every year, Celent surveys insurance company CIOs, asking the pressures they are facing and the priorities they have set for the coming year. The report covers eight topics including IT budgets, plans for initiatives, specific applications, and digital.

The report covers responses of CIOs of large and midsize insurers on eight topics:

 

  1. Business goals’ influence on IT plans.
  2. The status of major IT initiatives.
  3. Replacement or maintenance plans for specific applications.
  4. IT budgets: IT budget as a percentage of DPW.
  5. IT budgets: Change in IT budget 2016 vs. 2015.
  6. IT budgets: R&D as a percentage of total IT budget.
  7. Digital strategy planned activity.
  8. Incremental vs. disruptive innovation.

“As life and health CIOs look forward to 2016, business leaders of large insurers say they want IT to focus on growth and retention, while midsize insurer CIOs are asked to focus on cost reduction,” says Donald Light, director of Celent’s North America Property/Casualty practice and coauthor of the report.

“There is also a split between the plans of large and midsize CIOs,” says Tom Scales, a research director with Celent’s insurance practice, and coauthor of the report. “Large insurer CIOs are more focused on digital initiatives and analytics. Midsize insurer CIOs are emphasizing core system and ecosystem transformation. CIOs are enjoying adequate-to-good levels of financial resources.”

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

Influence of Business Goals on IT Plans

3

Major Initiative Status

5

Plans to Replace or Maintain Specific Applications

7

2016 IT Budgets

10

 

IT Budgets as a Percentage of Premium

10

 

Year-over-Year Percentage Changes in IT Budgets

10

 

Percentage of IT Budget Allocated to R&D

11

Digital Initiatives’ Projected Level of Activity

13

Innovation: Disruptive Vs. Incremental

15

Conclusions

16

Leveraging Celent’s Expertise

17

 

Support for Financial Institutions

17

 

Support for Vendors

17

Related Celent Research

18

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