IT Spending in Insurance: A Global Perspective

Industry Trends
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

Total insurance IT spending across North America, Europe, and Asia-Pacific will grow to US$140.2 billion in 2013, with continued growth to 154.5 in 2015—a CAGR of 5.0%. This upward shift is a cautious but encouraging indicator of future growth. However, estimates are down from last year, largely driven by regional economic impacts.

In a new report, IT Spending in Insurance: A Global Perspective, Celent analyzes IT spending trends across North America, Europe, Asia-Pacific, and Latin America. The report compares and contrasts the direction of IT spending trends. The growth is spread across the regions at various levels, with North America and Latin America seeing the highest growth rates.

European and North American financial institutions currently account for 73.2% of the global IT investments by insurance companies. Firms in the Asia-Pacific region account for 20%, Latin America accounts for 3%, and the Middle East / Africa / Commonwealth of Independent States account for the remaining 3.8%.

f“Regional uncertainty in Europe is putting a damper on insurance premiums and the resulting IT spending,” says Catherine Stagg-Macey, Senior Vice President with Celent’s Insurance Group and coauthor of the report. “North America has a respectable growth rate for the coming years, and the emerging markets continue to forecast very strong growth off a small base.”

This 38-page report contains 15 figures and 8 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

3

 

Definition of IT Spending

3

The Insurance Industry Global View

5

North America

8

 

Snapshot

8

 

Top Trends

11

Europe

15

 

Snapshot

15

 

Top Trends

17

Asia-Pacific

19

 

Snapshot

19

 

Top Trends

21

Latin America

25

 

Snapshot

25

 

Top Trends

27

Rest of the World

30

Conclusion

31

Leveraging Celent’s Expertise

32

 

Support for Financial Institutions

32

 

Support for Vendors

32

Related Celent Research

33

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