IT Spending Trends in the Japanese Insurance Industry: 2011
In March, Japan was rocked by one of the largest earthquakes on record. Despite the massive scale of the Great East Japan Earthquake, the insurance industry has weathered the disaster well. Celent forecasts that insurance IT investments will grow from 7.84 billion USD in the fiscal year ended March 2011 to reach 7.98 billion USD in the fiscal year ending March 2015.
In this new report, IT Spending Trends in the Japanese Insurance Industry: 2011, Celent offers an in-depth analysis of IT investments based on trends in the industry. This report takes into account the recent disaster while offering a comprehensive analysis of Japan’s insurance industry. Celent forecasts that information technology spending for the year ending March 2012 will decline marginally before rebounding to enjoy moderate growth. For the fiscal year ending March 2010 through the fiscal year ending March 2015 Celent expects a compound annual growth rate (CAGR) of approximately 0.38% as IT spending in Japan’s insurance industry trends largely sideways.
“The March 11 earthquake will accelerate change in a number of areas, including prompting the industry to revisit business continuity planning (BCP) and reconsider the adoption of green IT,” says KyongSun Kong, Analyst with Celent's Asian Financial Services Group and author of the report. “In terms of the latter, the disaster will spur companies that have been dragging their feet to study the introduction of technologies such as cloud computing and SaaS solutions.”
In this report, Celent scrutinizes the current state and future prospects for Japan’s insurance industry, offering analysis of IT trends as well as proposals to help insurance companies and vendors to formulate profitable strategies for the future.
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].
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Table of Contents
Definition of IT Spending
Insurance Industry Response to the Disaster
Insurance Premium Revenue Trends
Trends by Insurance Sector
Sectors Expected to Grow
Direct Channel Growth
Earthquake and Fire Insurance Under Review
Growth of Third Sector Products
Promoting a Shift to Paper Free Operations
IT Strategies: Entering a New Phase
BCF Under Review
Interest in Green Technologies and Cloud Computing
Embracing Sales Channel Tool Functions
Investments in Overseas Branch Systems and Locally Incorporated Operations
Adoption of Shared Systems
Introduction of External Package Software Solutions
IT Spending Trends in Japan’s Insurance Industry
Proposals for Insurance Companies
Proposals for Vendors
Leveraging Celent’s Expertise
Support for Financial Institutions
Support for Vendors
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