Insurance IT Management Strategies and Practices

April 15, 2004

Abstract

New York, NY, USA April 15, 2004

Reports Published by Celent

Under pressure to do more with less, insurance IT groups are re-evaluating their management practices and embracing CMM in an effort to gain control over their processes.

As insurance IT groups find themselves under increased pressure to do more with less and to ensure business/IT alignment, management issues are coming to the fore. Whether it is a matter of post-merger rationalization or just improving performance, many insurance IT groups are taking a long look in the mirror and asking how they can operate more efficiently and serve the needs of the enterprise more effectively.

Celent痴 new report, , is designed to familiarize insurance business and IT executives by providing an overview of key issues, practices, and new strategies in IT management.

"Insurers are realizing that legacy IT management practices can be as much of an issue as legacy systems," says Matthew Josefowicz, Manager of Celent痴 insurance group and author of the report. "We池e seeing increased focus in improving IT processes, most notably by embracing formal quality methodologies like CMM."

The report provides an brief overview of the current environment facing insurance IT groups and why management issues are of increased importance, examines the way insurance IT groups are structured and their relationship to the business groups they serve, looks at key issues involved in the management of individual IT projects, including project ownership, estimating resource requirements, evaluating and choosing vendors, and project management tools.

The report also provides an overview of SEI痴 Capability Maturity Model (CMM), a formal methodology for standardizing IT practices that is gaining popularity in the insurance industry, and looks at some of the drivers for adopting this methodology. It concludes with some general recommendations for insurance IT groups as they reconsider and attempt to improve their IT management practices.

The 31-page report contains 7 figures and 3 tables. A Table of Contents is available online.

of Celent Communications' Property/Casualty Insurance and Life/Health Insurance research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

        

Send mail to info@celent.com with questions or comments about this Web site.

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

 

New York, NY, USA April 15, 2004

Insurance IT Management  Strategies and Practices

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 5
CURRENT ENVIRONMENT 6
  Focus on Sustainable Results 6
  Business/IT Alignment 6
  Improving Internal Management Also Key 7
  "AAAA Rating for Technology" 7
STRUCTURING IT GROUPS 9
  Primary Organizational Models 9
  Centralized 9
  Decentralized 11
  Organizational Structure and the AAAA Rating for Technology 12
  Current Trends 12
SOURCING: INTERNAL, OUTSOURCED, AND "INTRASOURCED" 13
  Internal 13
  Outsourcing 14
  "IntraSourcing" 14
PROJECT APPROVAL PROCESS 16
  On Your Marks 16
  Get Set 17
  Go 17
  Exceptions 17
ESTIMATING RESOURCE REQUIREMENTS 18
  External 18
  Internal IT 18
  Business Staff 19
EVALUATING AND MANAGING VENDORS 20
  Evaluation 20
  Management 21
PROJECT MANAGEMENT PRACTICES 23
  Project Ownership 23
  Project Teams 23
  Project Management Training 23
  Project Management Platforms 24
THE GROWTH OF CMM: FORMALIZING IT PROCESSES 26
  About CMM 26
  CMM in Insurance 27
  Adopting CMM 27
  Advantages of Adopting CMM 27
  Advantages of Assessment 28
CONCLUDING RECOMMENDATIONS 29
  Tactical 29
  Strategic 29
OBJECTIVITY & METHODOLOGY 30

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