ICT Investment Trends in Insurance: Disruptions in the insurance technology domain nurture ICT investments
- Pages: 41
- Published: December 2017
- Report Code: GD0287CI
"ICT Investment Trends in Insurance", report presents the findings from a survey of 177 insurers regarding their Information & Communications Technology (ICT) investment trends. The survey investigates how insurers currently allocate their ICT budgets across the core areas of enterprise ICT expenditure: hardware, software, IT services, communications, and consulting.
The report illustrates the core technologies that enterprises are investing in, including business intelligence, green IT & virtualization, IoT, and cloud computing. The survey also highlights the approach to purchasing technology adopted by media companies. Through GlobalData’s survey, the report aims to provide a better insight to ICT vendors and service providers when pitching their solutions to insurers. The report focuses on insurance companies’ ICT expenditure trends for specific business areas and technologies, identifying the top three IT projects, and understanding the primary objectives of various systems components.
With technology going mainstream, insurers are striving to integrate it into their systems and processes to enhance their customer service and devise new strategies to survive in the dynamic insurance market.
Security, software licenses, application services, and network services are the segments primarily attracting a major proportion of the budget allocations in their respective domains of hardware, software, services, and telecommunications.
In particular, it provides an in-depth analysis of the following –
– How ICT budgets are set to change in 2017 in terms of their overall size
– Allocation across the core elements of IT spend, including hardware, software, services, communications, and consulting
– Distribution of ICT money in areas such as the networks, applications, service desk, and data centers
– Which ICT functions insurers are interested in outsourcing
– Insurers’ investment priorities based on their budget allocations across core technology categories such as business intelligence, green IT & virtualization, IoT, and cloud computing
– Factors that are influencing insurers’ investments in each technology category
– How insurers’ IT budgets are currently allocated across various segments within a technology category
– Insurers’ distribution of their ICT budget across various segments within a technology category
– Vendor satisfaction ratings for various core and advanced technology categories
– Insight into insurers’ preferred buying approaches
– Business objectives that insurers are looking to achieve through their IT investment strategies
– Factors that are influencing insurers’ decisions to select an ICT provider.
– Cloud computing services are witnessing an increased interest from insurers primarily driven by the benefits of high scalability, flexibility, cost reduction, and reliable business continuity plans.
– IoT has emerged as the next ground-breaking technology segment and insurers are inclined towards investing in this domain.
– GlobalData’s survey results reveal that insurers value ‘survival’ to be an important factor guiding their IT investment strategies, while ‘expertise in industry’ is their primary preference criterion for choosing ICT vendors.
Reasons to buy
– Understand how the insurers ICT landscape is set to change in 2017 to prioritize your target market
– Comprehend how ICT money are being allocated by insurers in specific verticals and size bands to improve your market penetration
– Make effective business decisions by recognizing the opportunities within each of the core areas of ICT spend (hardware, software, IT services, telecommunications, and consulting)
– Realign your sales initiatives by understanding the current strategic objectives of insurers
– Enhance your market segmentation with the included, detailed breakdown of opportunities within selected technology categories (business intelligence, green IT & virtualization, IoT, and cloud computing)
– Prioritize your focus areas by understanding which factors are influencing insurers’ decisions when selecting an ICT provider
– Understand the changes in customers’ priorities and identify the business objectives that insurers are looking to achieve through their ICT investment strategies.
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Table of Contents
Table of Contents
Key implications for ICT vendors
ICT budget changes
ICT budget allocation by core technology area
Hardware budget breakdown
Software budget breakdown
Third-party IT services expenditure
Cloud computing budget
ICT budget allocation by function
Outsourced IT functions
ICT investment priorities and vendor satisfaction
Green IT & virtualization
Internet of Things (IoT)
Business objectives influencing IT investment strategy
ICT provider selection
Key decision makers for purchasing technology
IT expenditure plans for specific business areas
Business areas receiving the largest investment
Upgrades to various business areas