Insurers begin looking to cloud for IT operational efficiencies
September 12, 2013
Grazed from BusinessCloud News. Author: Jonathan Brandon.
Global insurance IT budgets are projected to grow at a 6.5 per cent compound annual growth rate (CAGR) with total IT spend reaching $109bn by 2017. Moreover a growing portion of the investment will be going towards cloud computing technologies among others according to research and analysis firm Ovum.
Charles Juniper, senior insurance analyst, financial services technology at Ovum, believes insurers are beginning to prioritise IT investment once again following a lull in spending brought on by the global economic slowdown, with many firms targeting legacy systems modernisation, online channels, and fraud detection systems as key spending areas…
“The sharp decline in new business growth across all life insurance markets following the global slowdown led most insurers to rapidly and significantly cut their IT budgets,” Juniper says. “However, accelerating year-on-year growth in 2013 following some cautious expansion from 2011 confirms that life insurers are now moving from a cost-cutting mindset toward reinvestment in strategic IT projects.” “Cloud is beginning to emerge as an area of technology spend in the insurance industry – putting an exact percentage on it would be very difficult, but it is definitely gaining traction,” he added…
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