Insurance in Asia 2013: The CIO Perspective

by Wenli Yuan, June 14, 2013
Industry Trends
Asia-Pacific

Abstract

Asia insurers’ top drivers for IT investment in 2013 are increasing operational efficiency, growing market share, and complying with regulation.

In a new report, Insurance in Asia 2013: The CIO Perspective, Celent reviews in detail the business trends facing the market and how they are impacting IT investment. The report identifies key business themes and discusses broad IT investment plans and priorities for Asian insurers. Details of budgets, IT spending, and interest in new and emerging technologies, such as mobility solutions, are also addressed.

“Insurance premium growth rate in some markets is starting to slow down, and gaining market share is increasingly challenging,” says Wenli Yuan, Senior Analyst with Celent's Asian Financial Services Group and author of the report. “Increasing operational efficiency, expanding market share, and coping with regulatory changes are top drivers for insurers’ technology investment.”

In particular, the need to increase operational efficiency is driving Asian insurers’ technology investment in:

  • Improving automation, such as: new business straight-through processing and turnaround time through auto underwriting and issuance.
  • Implementing core applications such as new claims systems.
  • Upgrading and modernizing applications.
  • Consolidating and standardizing applications and databases.
  • Implementing centers of excellence or shared processing/service centers.
  • Using cloud and applying SaaS models.
  • Improving internal collaboration platforms.

Trends discussed in this report reflect Celent’s experience of the market based on ongoing discussions with the industry and, specifically, a survey and detailed interviews with CIOs at the beginning of 2013.

This 32-page report contains 16 figures.

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 operating unit 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

1

Introduction

2

 

Methodology

2

The State of the Insurance Market in Asia

3

 

Market Size

3

 

Market Growth

5

Business Themes Driving IT Investment

10

 

Market Share

10

 

Coping with Regulatory Changes

14

 

Increase Operational Efficiency

15

CIO Survey

17

 

IT Budgets

17

 

IT Spending Areas

18

 

Approach to Legacy Core Systems

19

 

Build Vs. Buy

20

 

Emerging Technology

21

Conclusion

25

Leveraging Celent’s Expertise

26

 

Support for Financial Institutions

26

 

Support for Vendors

26

Related Celent Research

27

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