Property/Casualty CIO Pressures and Priorities 2017: North America Edition

by Donald Light, January 6, 2017
Other
North America

Abstract

Celent has released a new report titled Property/Casualty CIO Pressures and Priorities 2017: North America Edition. The report was written by Donald Light, a Research Director with Celent’s Insurance practice.

This report Celent presents the key findings from its annual survey of North American property/casualty CIOs, outlining their priorities and pressures for 2017.

CIOs in all segments identify the business goals of growth and retention, process optimization, and innovation as the most important influences on their IT plans.

Two initiative types lead the CIOs’ rankings in all three segments: legacy modernization and digital (including analytics and the Internet of Things).

The increases of 7% for midsize insurers and 3% for large insurers are consistent with prior years. The 7% increase for smaller insurers is a bounce back from a 3% increase a year earlier.

“CIOs are looking forward to 2017 as a year supported by adequate resources, focusing on enabling smart growth for their business partners,” observed Light.

“Another new question on this year’s survey asks CIOs how they are engaging with insurtech,” Light continued. “Among all sizes of insurers, monitoring was overwhelmingly the most common response. A handful of large and midsize insurers are piloting. And a very small portion of large and midsize insurers are investing in insurtech. No CIO reported insurtech in production.”

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 part 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

6

Plans to Replace or Maintain Specific Applications

10

2017 IT Budgets

14

 

IT Budgets as a Percentage of DPW

14

 

Year-over-Year Percentage Changes in IT Budgets

15

 

Percentage of IT Budget Allocated to R&D

15

Digital Initiatives’ Projected Level of Activity

17

How Insurers Are Facilitating Innovation

21

How Insurers Are Engaging with Insurtech

25

Conclusions

27

Leveraging Celent’s Expertise

28

 

Support for Financial Institutions

28

 

Support for Vendors

28

Related Celent Research

29

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