Property/Casualty Insurance CIO Pressures and Priorities 2016: North America Edition

by 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, midsize, and small 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 CIOs look forward to 2016, business leaders are saying they want process optimization, and growth and retention to inform IT priorities,” says Donald Light, director of Celent’s North America Property/Casualty practice and coauthor of the report. “Core system modernization is a top IT initiative. Resources in most cases are adequate. However, some CIOs will be challenged by flat or reduced levels of 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 subsidiary 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

9

2016 IT Budgets

13

 

IT Budgets as a Percentage of DPW

13

 

Year-over-Year Percentage Changes in IT Budgets

13

 

Percentage of IT Budget Allocated to R&D

14

Digital Initiatives’ Projected Level of Activity

16

Innovation: Disruptive Vs. Incremental

19

Conclusions

20

Leveraging Celent’s Expertise

21

 

Support for Financial Institutions

21

 

Support for Vendors

21

Related Celent Research

22

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