Insurance in the United Kingdom: The CIO Perspective

by Catherine Stagg-Macey,  Jamie Macgregor, April 30, 2013
Industry Trends
EMEA

Abstract

IT spending in the United Kingdom declined slightly against the backdrop of another year of difficult trading. Celent predicts flat IT budgets for the next two to three years.

In the report Insurance in the United Kingdom: The CIO Perspective, Celent reviews UK insurers’ technology plans and priorities. Investments in underwriting and claims capabilities are high on this year’s agenda. Digital-enabling projects –real-time, online, anytime, anywhere, secure and appropriate access to data – are starting to increase as insurers attempt to become more customer-centric, focusing on both sales and service.

“What we are seeing is a continuation of the investment in core systems from recent years,” says Jamie Macgregor, Senior Vice President with Celent’s Insurance Group and coauthor of the report. “At the same time, there are conversations around how the customer experience can be improved.”

This report details current business trends facing the market for the coming year, and how these are impacting IT investment. Key business themes are identified, and the broad IT investment plans and priorities for UK insurers are reviewed. The report also addresses budgets and IT spending. Trends and data discussed this report reflect Celent’s experience of the market based on ongoing discussions with the industry and, specifically, deep interviews with 12 CIOs.

This 22-page report contains eight figures and two tables.

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 the United Kingdom

3

 

Slow Recovery

4

 

More of the Same

4

 

Major Players

5

Business Themes

6

 

Insurers Focus (Again) on Growth and Operational Efficiency

7

 

Keeping on Top of Regulation Changes

8

IT Initiatives

9

 

Underwriting Capabilities

9

 

Digital

9

 

Claims Capabilities

10

 

Data Capabilities

10

 

Improving IT Infrastructure

11

 

Other Investment Areas

11

IT Budgets and Spending

12

 

Restricted Budgets for 2013

12

 

UK Insurance IT Spending Projections

12

Final Thoughts

14

 

2013 Predictions

14

Leveraging Celent’s Expertise

15

 

Support for Financial Institutions

15

 

Support for Vendors

15

Related Celent Research

16

Sign in to download reports and access personalized information