October 2020 – Overall, insurer IT spending levels and priorities are largely consistent with the past few years, despite the pandemic. The biggest shift is the increased priority of digital initiatives among life insurers. The industry remains focused on perennial challenges: increasing ease of doing business for all stakeholders, improving analytics-driven insights, and increasing speed to market. Limited resources and talent availability remain the biggest challenges, with additional organizational pressures due to operating remotely.
This report analyzes the results of the 13th annual survey of more than 100 insurer CIO members of the Novarica Insurance Technology Research Council.
- Budgets, including growth rates and breakdowns by spend type and focus area
- Priorities and challenges for insurer IT organizations for 2021 and beyond
- Current system capabilities and replacement plans across the Novarica Insurance Core Systems Map
Key Points and Findings
Life insurers are focused heavily on digital, less on new products. Many large and midsize insurers recognize their weak portal capabilities and are planning investment.
Property/casualty insurers’ priorities have not been changed by the pandemic. They remain focused on speed to market, analytics, and distributor support.
Cloud is growing rapidly, outsourcing slowly. Three quarters of insurers are increasing their cloud footprint; only about 25% are increasing blended staffing or infrastructure outsourcing.