2011 Asia Insurance CIO Survey

Pressures, Priorities, and Practices
by KyongSun Kong,  Wenli Yuan, May 24, 2011
Operations/ Benchmarking
Asia-Pacific

Abstract

Asia insurers’ top three drivers for IT investment in 2011 are growing the business, ease of doing business with agents and other distribution channels, and ease of doing business with customers.

In a new report, 2011 Asia Insurance CIO Survey: Pressures, Priorities, and Practices, Celent reports the findings of its annual survey of Asia insurance CIOs.

The report reviews in detail the current business trends facing the market for 2011, and how they are impacting IT investment. The report identifies key business themes and discusses broad IT investment plans and priorities for Asian insurers are discussed. Details of budgets and IT spending, use of outsourcing, and interest in new and emerging technologies are also addressed.

“There is increased spending on distribution this year,” says Wenli Yuan, Senior Analyst with Celent's Asia Financial Services Group and coauthor of the report. “The major channel priority for technology investment is still agent/tied salesforce. With regard to technology investment, Internet, bank, and mobile channels are more important to Asian insurers compared to 2010.”

“Cloud computing and mobile applications are being increasingly used in the Asia-Pacific region,” adds KyongSun Kong, Analyst with Celent's Asia Financial Services Group and coauthor of the report.

Trends and data discussed in this report reflect Celent’s experience of the market based on ongoing discussions with the industry and specifically, interviews with selected Asia insurance CIOs from mainland China, Hong Kong, Taiwan, Australia, India, South Korea, and Thailand in March and April 2011.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

6

Business Trends

7

Technology Trends

10

Business Drivers of IT Investment

13

IT Budgets

16

 

IT Budget for 2011

16

 

Change in IT Budgets

16

 

Budget for New Projects Vs. for Maintenance

17

 

IT Budget Allocation

18

 

IT Staffing

19

 

IT Staff Involvement

19

Investment in Underwriting / Policy Administration

21

 

Business Drivers

21

 

Investment Priorities

22

 

How to Improve?

24

 

Related IT Initiatives

25

Investment in Claims

28

 

Business Drivers

28

 

Investment Priorities

28

 

How to Improve?

29

 

Related IT Initiatives

30

Investment in Distribution

32

 

Channel Priorities for Technology Investment

32

 

Investment Focus

34

 

Related IT Initiatives

34

Investment in Infrastructure/Architecture

37

 

Investment Priorities

37

 

Related IT Initiatives

37

Vendors and Outsourcing

40

 

Investment and Activity Levels with Vendors

40

 

Views on Outsourcing

46

Emerging Technology

50

The Impact of Solvency Regulation

51

Final Thoughts

52

Leveraging Celent’s Expertise

53

 

Support for Financial Institutions

53

 

Support for Vendors

53

Related Celent Research

54

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