14th annual Aite-Novarica IT Budgets and Projects studies cover the property/casualty and life/annuity/benefits sectors, leveraging data from more than 60 insurers
Boston, MA (Oct. 26, 2021) – Insurer IT spending levels and priorities for 2022 remain similar to previous years, according to the 14th annual Insurer IT Budgets and Projects reports for both Property/Casualty and Life/Annuity/Benefits from research and advisory firm Aite-Novarica Group. The findings are designed to help understand peer behavior, budgets, and priorities for the coming year, leveraging data from more than 60 insurer CIO members of the Aite-Novarica Insurance Technology Research Council.
“The challenges insurers expect to face in the coming year indicate the ongoing impact of the pandemic on business conditions, project management, and workflows,” said Harry Huberty, Head of CIO Research and co-author of these reports. “Nearly all insurers expect to face talent-related challenges in 2022, and most are preparing to manage a large number of competing needs with a distributed workforce in a hybrid environment.
Key points and findings for insurers include:
- Spending levels are within historical norms. While overall insurer IT spending ratios are expected to rise for 2022, property/casualty insurers are within normal variation. Life/annuity/benefits insurer spend is somewhat down for larger insurers and up slightly for midsize insurers.
- Larger property/casualty insurers are prioritizing agility, smaller property/casualty insurers connectivity. Larger insurers are seeking improved internal workflows to make quicker product changes; midsize insurers are prioritizing distributor ease of doing business.
- Life insurers are investing heavily in digital. Midsize insurers are emphasizing distributor experience; larger insurers are expanding channel support.
- Talent and bandwidth are major concerns. Insurers expect to face challenges in 2022 around recruiting and retaining top employees, as well as prioritizing complex project portfolios with limited staff.
Novarica will present the results of these studies in a webinar on November 9.
The Aite-Novarica Research Community is open to insurer executives at all levels.
About Aite-Novarica Group
Aite-Novarica Group is an advisory firm providing mission-critical insights on technology, regulations, markets, and operations to hundreds of banks, insurers, payments providers, and investment firms—as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts. For more information, visit aite-novarica.com.
Source: Aite-Novarica GroupTags: Aite-Novarica Group, benefits, Big Data, customer experience (CX), data, Life & Annuity, priorities, Property/Casualty (P&C) insurance