Insurance in Latin America 2013: The CIO Perspective

by Juan Mazzini, August 6, 2013
Industry Trends
Latin America

Abstract

Every year Celent surveys insurance CIOs asking them about their pressures, priorities, and practices for the coming year. This report provides the most important results from the survey.

This report, Insurance in Latin America 2013: The CIO Perspective, is the first edition of Celent’s CIO survey for Latin America. The report reviews business trends and how they are driving IT investment and strategies; it also benchmarks findings from companion reports for North America, Europe, and Asia-Pacific.

Trends discussed in this report reflect Celent’s experience of the market based on ongoing discussions with the industry and, specifically, interviews with selected Latin American insurance CIOs with responsibilities over a total of 36 insurance companies located in Argentina, Aruba, Bolivia, Brazil, Chile, Colombia, Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Mexico, Panama, Peru, Uruguay, and Venezuela.

There are several distinct trends in Latin America:

  • Continued growth.
  • More upgrading/replacing of policy administration systems.
  • Insurers starting to take advantage of cloud-based solutions.
  • Mobile and social media reshaping the consumer profile.
  • Enhanced support for agent distribution channels.
  • Investment in support for other distribution channels.

“CIOs are reacting to the business imperative of becoming smarter, doing more with less,” says Juan Mazzini, Senior Analyst with Celent’s Insurance Group and author of the report. “The demand for solutions we are seeing is totally aligned with the drivers indicated by CIOs: agility, growth, and ease of doing business with distribution partners and agents.”

The report identifies key business themes and discusses broad IT investment plans and priorities for Latin American insurers. IT spending and interest in new and emerging technologies, such as mobility solutions, are also addressed.

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

1

Introduction

3

 

Methodology

4

Latin American Insurance Market Overview

5

 

Economic and Business Outlook

5

Business Themes Behind IT Investment

8

 

Theme 1: Agility / Operational Efficiency

11

 

Theme 2: Growth

11

 

Theme: Facilitate Agent/Distribution Channel Business

12

IT Initiatives

14

 

Approach to Legacy Core Systems

14

 

Major Initiative

15

 

Sourcing Strategies

16

IT Budgets and Spending

18

 

IT Budget

18

 

IT Spending

19

 

IT Staffing

21

IT Standards

23

Emerging Technologies

25

 

Telematics

26

 

Social Media

28

 

Cloud

29

 

Software as a Service (SaaS)

29

 

Mobility

30

IT Management Issues

32

Final Thoughts

34

Leveraging Celent’s Expertise

36

 

Support for Financial Institutions

36

 

Support for Vendors

36

Related Celent Research

37

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