NEW YORK--(EON: Enhanced Online News)--Insurance technology budgets and plans for 2014 will primarily build on insurers’ current initiatives in core systems and analytics, with some advances in mobile and big data initiatives becoming more common as well, according to a new report from research and advisory firm Novarica (www.novarica.com). A free excerpt of the report is available online at http://www.novarica.com/InsIt_2014
“But mobile, social media, and cloud deployments and pilots are growing somewhat. Twice as many large property/casualty insurers are deploying or piloting specialized technology tools to handle big data than in last year’s study.”
“Insurance technology budgets and plans change slowly, and insurers’ self-assessment of their own IT capabilities remains modest – most insurers are primarily investing to get up to the bar, not over it,” said Matthew Josefowicz, managing director of Novarica and author of the report, which is the 5th annual Novarica study of insurer IT budgets and plans for the year ahead. “But mobile, social media, and cloud deployments and pilots are growing somewhat. Twice as many large property/casualty insurers are deploying or piloting specialized technology tools to handle big data than in last year’s study.”
The report is based on a survey of 100 insurer CIOs and equivalent IT leaders who are members of the Novarica Insurance Technology Research Council, a free, moderated knowledge-sharing community of over 300 insurance IT senior executives. Other key findings of the report include:
- Budgets are up slightly across the board, but IT spending ratios are within historical norms.
- Project priorities are the generally the same as 2013, with some minor differences. For more than half of respondents in this year’s survey, the top two priority projects for 2014 are the same as for 2013.
- Core policy administration system, claims, and billing replacement activity continues, while business intelligence and portals continue to be enhanced rather than replaced in general. Replacement and enhancement plans vary significantly by size and sector of company.
- Midsize property/casualty insurers are starting to catch up with their larger competitors in deploying mobile capabilities for agents and policyholders. Large life/annuity companies in the sample have been more aggressive in deploying and piloting mobile and tablets for agents/brokers.
Novarica, the research division of Novantas, provides information, insights, and perspective on markets, operations, and technology to financial services and insurance executives and project teams. The company delivers its service through published research, retained advisory services, and project-based consulting. Novarica draws its knowledge from the professional experience of its principals, the ongoing information gathering initiatives of dedicated research staff, and regular communication with industry sources through informal networks and formal Research Councils of hundreds of senior industry executives. For more information, visit www.novarica.com.