2011 US Insurance CIO Survey: Pressures, Priorities, and Practices

by Craig Weber,  Donald Light, February 18, 2011

Abstract

Celent reports the findings of its annual survey of US insurance CIOs. This year’s survey confirms that CIOs believe there is a “New Normal” environment for their companies, but nevertheless have a focus on growth.

In a new report, 2011 US Insurance CIO Survey: Pressures, Priorities, and Practices, Celent highlights business issues and IT priorities reported by property/casualty and life/health CIOs. Findings include allocation of resources for new initiatives, year-to-year changes in IT budgets, and the anticipated evolution of technology platforms over the next three years.

“There is a modest increase in year-over-year total IT spending growth, showing a positive trend from a year earlier,” says Craig Weber, Senior Vice President of Celent's Insurance group and coauthor of the report. “CIOs are continuing to focus on execution and balancing priorities,” he added.

“Multiyear core system initiatives are the biggest big ticket items, although analytics projects also showed strength.” adds Donald Light, Senior Analyst with Celent's Insurance Group and coauthor of the report.

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

4

Key Findings

6

The New Normal

7

Priorities and Projects

10

IT Budgets and Staff

17

Technology and Infrastructure Strategies

22

SOA and Web Services

28

Sourcing Strategies

33

Development Strategies

36

Emerging Technology

40

Conclusions

42

Leveraging Celent’s Expertise

43

Related Celent Research

44

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