LATAM Property & Casualty Insurance: 2023 IT Priorities and Pressures

11 July 2023

Abstract

The past years have been full of uncertainties for P&C insurers. While the industry was optimistic about entering 2020 with ambitious technology investments, the COVID-19 pandemic delayed many projects, especially the big ecosystem modernization and transformation projects.

In our 10th annual review of IT priorities and projects for Latin American insurers in P&C, Celent aims to answer 1) What are the drivers of IT investment, for Latin American insurers?, 2) What is the planned level of activity, by Latin American insurers, regarding IT? and 3) What is the expected IT investment by Latin American insurers?

Our estimations in 2022 were reflecting the optimism related to the end of the pandemic and its impact on insurers’ IT investments. This year’s survey suggests that P&C insurers have spent less on IT, most likely due to the impact of the recession, currency devaluation, and inflation hurting business in most countries in LATAM.

Thirty-three LATAM P&C insurance C-level executives with IT responsibility in 40 insurance operations contributed to our survey. Although the survey was reasonably short, it covered a broad range of topics, including business priorities, IT budgets, investment priorities, cloud adoption, and innovation and insurtech.

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